Updates on Trump Tariffs
June 3
Effective June 4, the Trump administration will double tariffs on imported steel and aluminum from 25% to 50%, citing national security and economic concerns. The move doubles previous such tariffs that were imposed in March.
These tariffs aim to bolster U.S. metal producers, but has drawn criticism from international partners, including the EU, UK, and Australia. All of those countries warn of retaliatory measures and disrupted trade relations. Domestically, manufacturers reliant on these metals fear increased production costs and potential job losses, echoing past tariff impacts.
The steel and aluminum tariffs are currently subject to a temporary stay issued by a federal appeals court last week. Unless the stay is lifted or the courts rule otherwise, the 50% tariffs will proceed as planned.
More updates to come.
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May 29 – UPDATED
Yesterday, the U.S. Court of International Trade ruled that President Donald Trump’s “Liberation Day” tariffs were unlawfully imposed under the 1977 International Emergency Economic Powers Act (IEEPA). The court found that chronic trade deficits and reliance on foreign manufacturing did not meet the IEEPA’s requirement of an “unusual and extraordinary threat,” thereby exceeding the scope of executive authority. As a result, the tariffs – targeting imports from countries including Mexico, Canada, and China – were vacated, and U.S. Customs was ordered to halt their collection.
However, today, a federal appeals court granted a temporary stay of the lower court’s decision, effectively reinstating the tariffs while the appeal is considered. The appeals court did not provide an explanation for the stay, but set deadlines for responses from the plaintiffs and the administration by early June.
It’s important to note that not all tariffs on these countries have been canceled. The ruling only affects those imposed under IEEPA. Tariffs enacted under Section 301 of the Trade Act of 1974 (focused on unfair trade practices) and Section 232 of the Trade Expansion Act of 1962 (citing national security) remain in place. For instance, the 25% tariffs on steel and aluminum imports from Canada and Mexico under Section 232 continue to apply.
The Trump administration has indicated plans to escalate the matter to the Supreme Court, seeking to reinstate the tariffs based on emergency economic powers.
May 28
President Donald Trump announced a proposed 50% tariff on European Union (EU) imports, citing a $178 billion trade deficit in goods. The tariffs, initially set for June 1, were postponed to July 9 after discussions with European Commission President Ursula von der Leyen. Trump’s demands include increased EU purchases of U.S. liquefied natural gas and defense products, reduction of the EU’s 10% auto import tariff, and resolution of disputes over food safety standards. The EU, while open to negotiations, remains firm on issues like hormone-treated beef and genetically modified crops. European leaders have warned of immediate retaliation if the tariffs are implemented, recalling previous countermeasures against U.S. tariffs. Negotiations are ongoing, with key meetings planned in Paris.
May 12
Over the weekend, the United States and China reached a pivotal agreement to temporarily reduce tariffs, marking a significant de-escalation in their ongoing trade tensions. Following negotiations in Geneva, both nations consented to a 90-day period during which the U.S. will lower tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on U.S. imports from 125% to 10%. This development, hailed by President Donald Trump as a “total reset” in U.S.-China relations, led to a substantial rally in financial markets, with the Dow Jones Industrial Average surging over 1,000 points and significant gains observed in the S&P 500 and Nasdaq indices.
While the agreement excludes certain U.S. tariffs related to fentanyl, it is viewed as a constructive step towards a broader trade resolution. Analysts express cautious optimism, noting that although the temporary relief offers economic respite, underlying structural issues remain unresolved. The 90-day window provides an opportunity for further negotiations aimed at achieving a more comprehensive and lasting trade agreement.
May 8 – ITEM 2/2
The U.S. and U.K. finalized a trade agreement focusing on tariffs and market access, marking the first such deal under President Donald Trump’s reciprocal tariff policy introduced in April. The U.S. will maintain a 10% tariff on U.K. imports, while the U.K. will reduce tariffs on U.S. goods from 5.1% to 1.8%.
The agreement includes matching steel and aluminum tariffs and quotas. Additionally, the U.S. will impose a 10% tariff on up to 100,000 U.K. automobiles annually; imports exceeding this quota will face a 25% duty. This builds upon earlier U.S. tariffs of 25% on imported steel, aluminum, automobiles, and car parts.
The deal also opens the U.K. market to U.S. exports of agricultural products like beef and ethanol, as well as machinery, textiles, and chemicals, totaling an estimated $5 billion in export value.
In 2024, U.K. imports constituted 2.8% of U.S. trade, with the U.S. holding a $12 billion trade surplus. This agreement reflects the Trump administration’s broader strategy of negotiating reciprocal trade terms.
May 8 – ITEM 1/2
Senior U.S. and Chinese officials will meet in Switzerland from May 9-12 for the first high-level trade talks since tensions escalated in the ongoing trade war. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng to address the tariff disputes that have disrupted global trade. Currently, the U.S. has levied tariffs as high as 145% on Chinese imports, while China has retaliated with tariffs up to 125%.
The talks aim to reduce these trade barriers and ease tensions. A successful outcome could lead to a rise in container traffic, further tightening shipping capacity and possibly triggering higher freight rates and renewed port congestion – similar to the shipping surge seen during the pandemic.
Transpacific trade has suffered, with shipments from China to the U.S. plummeting 54% in late April. This has resulted in major carriers canceling up to 42% of sailings on affected routes. Despite this, Walmart and Target have told Chinese suppliers to resume shipments – planning to absorb tariff costs – in the hopes for a recovery in demand and a potential thaw in trade relations.
April 21
U.S. Trade Representative Jamieson Greer announced a revised plan that modifies an earlier proposal by the Trump administration. Instead of imposing flat fees of up to $3.5 million per docking, the new approach targeting Chinese-built and Chinese-operated vessels docking at U.S. ports introduces charges based on cargo weight or container count, with a maximum of five assessments per year. This change aims to reduce the financial burden on shipping companies while still addressing concerns about China’s dominance in global shipbuilding and logistics. The fees are scheduled to take effect in mid-October and can be waived for shipowners who commit to purchasing U.S.-built vessels. Additional charges will apply to non-U.S.-built car carrier ships and, in three years, to LNG carriers. Exemptions have been made for empty bulk commodity carriers and specific regional routes. The administration asserts that these measures will bolster domestic shipbuilding and protect national security, although industry stakeholders warn of potential supply chain disruptions and increased costs for consumers.
April 11
China announced a significant escalation in its trade dispute with the U.S. by imposing a 125% tariff on American imports, effective April 12. This move was in direct response to the United States’ cumulative 145% tariffs on Chinese goods, which include a recent 125% hike and an earlier 20% levy. Despite this retaliatory measure, China signaled a potential de-escalation by stating it would refrain from further tariff increases, suggesting that American products have become unmarketable due to the current high tariff levels. China also announced plans to file a complaint with the World Trade Organization, accusing the U.S. of violating international trade norms.
April 10
President Donald Trump announced a 90-day suspension of tariffs on imports from most countries, aiming to facilitate trade negotiations with up to 75 nations. This suspension excludes China, which continues to face increased tariffs.
In retaliation, China imposed an 84% tariff on U.S. goods, a move U.S. Treasury Secretary Scott Bessent criticized as “unfortunate” and detrimental to China’s own interests. Bessent urged Chinese officials to return to the negotiating table, and warned against currency devaluation, suggesting it could lead to increased tariffs from other countries.
In response to China’s actions, President Trump amended an executive order to raise tariffs on Chinese imports by 50%, resulting in a total tariff rate of 104%. Additionally, tariffs on low-cost Chinese shipments under $800 were increased from 30% to 90%, with per-shipment fees set to rise incrementally over the following months.
April 4
In response to President Donald Trump’s “Liberation Day” tariffs announced on April 2, several countries have implemented retaliatory measures, escalating global trade tensions.
China: The Chinese Ministry of Finance condemned the U.S. tariffs as violations of international trade rules, and announced a 34% tariff on all U.S. imports, effective April 10. Additionally, China imposed export controls on rare earth minerals and restricted dealings with certain American companies.
Canada: Prime Minister Mark Carney criticized the United States’ actions as a “tragedy,” and announced a 25% tariff on all automobiles imported from the U.S.
European Union: European Commission President Ursula von der Leyen warned of “terrible consequences” and indicated readiness to respond, emphasizing the importance of dialogue to resolve the dispute.
These retaliatory measures have contributed to significant market volatility. The Dow Jones Industrial Average dropped 1,600 points, while the Nasdaq and S&P 500 fell 6% and 4.8%, respectively, marking the worst single-day declines since 2020. Economists warn that escalating trade tensions may lead to increased consumer prices and a potential economic slowdown.
April 2
Today, President Donald Trump announced the “Liberation Day” tariffs, imposing a universal 10% baseline tariff on all U.S. imports, with higher “reciprocal” rates targeting specific countries: 34% on China, 32% on Taiwan, 26% on India, 24% on Japan, and 20% on the European Union. Additionally, a 25% tariff was placed on all automobile imports. The administration asserts these measures aim to “level the playing field” for American workers and industries. Critics, however, warn of potential economic repercussions, including increased consumer prices and strained international relations. Canada, for instance, faces 25% tariffs on its goods and 10% on energy exports, prompting concerns about job losses and a possible recession. The European Union has expressed deep concern, signaling potential countermeasures and emphasizing the need for negotiation.
March 27
President Donald Trump announced 25% tariffs on all foreign-made automotive imports, effective April 2. This measure aims to boost domestic manufacturing and is projected to generate approximately $100 billion annually. However, the tariffs are expected to increase vehicle prices in the U.S. – potentially by up to $10,000 – and reduce domestic car production. American manufacturers like Ford and General Motors have already experienced stock declines, with analysts forecasting a 30% drop in earnings for both companies. The policy also affects auto parts, complicating supply chains, especially for vehicles assembled in the U.S. with significant foreign components. The European Union and other trading partners have expressed concerns, and are considering retaliatory measures.
March 26
President Donald Trump announced a 25% tariff on countries purchasing oil or gas from Venezuela, effective April 2. This measure aims to intensify economic pressure on President Nicolas Maduro’s regime, citing insufficient progress on electoral reforms and the return of illegal migrants. The tariffs target nations like China, Venezuela’s largest oil buyer, leading to immediate disruptions in Venezuelan oil trade. Additionally, the U.S. extended Chevron’s deadline to wind down its Venezuelan operations until May 27 – allowing temporary continuation of activities to prevent a collapse in Venezuelan crude exports to the U.S.
March 21
The European Union announced a delay in implementing retaliatory tariffs on U.S. imports until mid-April. This postponement affects tariffs on approximately €26 billion ($28.2 billion) worth of American goods, including whiskey, machinery parts, lingerie, and soy products. The initial tariffs were scheduled to begin on April 1, in response to President Donald Trump’s imposition of duties on foreign steel and aluminum. The EU’s decision allows additional time for negotiations and consultations among member states, seeking a mutually agreeable resolution to avoid escalating the trade dispute.
March 14
Yesterday, President Donald Trump announced a proposal to impose a 200% tariff on alcoholic beverages imported from the European Union (EU). This action is in direct response to the EU’s plan to implement a 50% levy on American whiskey, part of a broader €26 billion retaliation against recent U.S. tariffs on steel and aluminum imports.
The proposed U.S. tariffs would significantly affect the prices of European wines, champagnes, and spirits. This escalation has raised concerns within the alcohol industry, particularly among Irish whiskey producers who rely heavily on the U.S. market.
European officials, including France’s foreign trade minister, have expressed their intent to resist these measures, emphasizing the potential harm to both economies. The situation has unsettled markets, leading to declines in European stocks and shares of major drinks producers.
Industry groups, such as the Distilled Spirits Council of the United States, are urging negotiations to establish a zero-tariff agreement, aiming to prevent economic harm and protect jobs within the American hospitality sector.
March 12
President Donald Trump imposed a 25% tariff on all steel and aluminum imports, citing national security and economic interests. Initially, there were plans to increase tariffs on Canadian metals to 50%. But after negotiations, the administration decided to maintain the 25% rate.
The European Union responded with retaliatory tariffs on U.S. industrial and agricultural products, focusing on exports from Republican-led states. Canada also imposed 25% tariffs on nearly $30 billion worth of U.S. goods, including steel and aluminum.
These trade actions have impacted financial markets, with U.S. stock indices experiencing volatility following the announcements. The tariffs apply new requirements for steel to be “melted and poured” and aluminum to be “smelted and cast” in North America, affecting international suppliers.
The situation continues to evolve as trade partners react and adjust their policies. Discussions between the U.S. and affected countries are ongoing, with further developments expected.
March 7
Yesterday, President Donald Trump announced a one-month postponement of the 25% tariffs on imports from Canada and Mexico, originally implemented on March 4. This exemption, effective until April 2, applies to goods and services compliant with the United States-Mexico-Canada Agreement (USMCA), accounting for approximately 50% of imports from Mexico and 38% from Canada. The decision aims to provide temporary relief to key U.S. trading partners and stabilize markets.
In response, Canada will maintain its initial retaliatory tariffs on U.S. goods, targeting items like orange juice, peanut butter, and motorcycles, totaling $30 billion Canadian. However, a second wave of tariffs, worth $125 billion Canadian, has been suspended following the postponement. Additionally, Ontario plans to increase electricity charges for American states by 25% starting March 10.
U.S. Commerce Secretary Howard Lutnick indicated that while the exemption offers temporary relief, new tariffs targeting specific industries — including automobiles, pharmaceuticals, and semiconductors — may be introduced after April 2.
March 6
Yesterday, the Trump administration announced a one-month delay on the implementation of 25% tariffs for automobiles imported from Canada and Mexico. These tariffs were initially set to take effect on April 2.
The decision to postpone came after President Trump engaged in discussions with top executives from major U.S. automakers — Ford, General Motors, and Stellantis — who have been actively lobbying against the tariffs due to concerns over potential economic repercussions. This temporary reprieve is intended to provide automakers additional time to adjust their strategies and mitigate potential economic disadvantages.
The announcement positively impacted financial markets, with notable increases observed in the Dow Jones, Nasdaq, and S&P 500 indices, as well as in the stock prices of Stellantis, GM, and Ford.
Despite this exemption, President Trump is expected to introduce new tariffs in April targeting other sectors, which may escalate trade tensions. Canada and Mexico are considering retaliatory measures, with China already implementing its own in response.
March 4
Today, the Trump administration implemented significant tariffs targeting imports from Canada, Mexico, and China. 25% tariffs were imposed on goods from Canada and Mexico, with Canadian energy resources facing a lower tariff of 10%. Additionally, tariffs on Chinese imports were increased from 10% to 20%. The intent is to pressure these nations to address the production and distribution of fentanyl into the United States.
In response, the affected countries announced reciprocal tariffs on U.S. goods. Canada imposed 25% tariffs on $155 billion worth of American products, with plans to extend these measures further in the coming weeks. The targeted goods include key U.S. exports, particularly from regions politically significant to the Trump administration. China introduced new tariffs ranging from 10% to 15% on U.S. agricultural products, such as soy, pork, chicken, and beef. Mexico is expected to announce its own set of retaliatory tariffs, with details forthcoming.
As trade tensions escalate, increases in consumer prices and disruptions in global supply chains are likely to occur. The U.S. stock markets reacted negatively, with significant declines in major indices, reflecting investor apprehension over the potential economic impact of these tariffs. Retailers, including Target, have warned consumers to prepare for imminent price hikes on various products, notably groceries, fashion items, and electronics.
February 28
President Donald Trump has announced effective dates for tariffs on imports from China, Canada, and Mexico, citing efforts to curb illicit drugs and illegal migration.
A 25% tariff on imports from Canada and Mexico (10% on certain energy-related products) will take effect on March 4 after a temporary pause for negotiations on border security and drug trafficking. Canadian Prime Minister Justin Trudeau has vowed strong retaliatory tariffs, potentially affecting nearly 400 U.S. agricultural and processed food products. Mexico has not officially announced countermeasures but is reportedly considering tariffs on U.S. pork, cheese, fresh produce, steel, and aluminum. Talks between the U.S., Canada, and Mexico continue, with uncertainty over whether the tariffs will be delayed.
Additionally, the existing 10% tariff on Chinese and Hong Kong-origin goods will double to 20% on March 4, with fentanyl production cited as the justification. No official Federal Register notice has been published yet, and ongoing negotiations could impact implementation. The U.S. Customs and Border Protection (CBP) guidance updated on February 25 is expected to remain applicable.
It remains uncertain whether diplomatic efforts will delay or prevent the tariffs from taking effect as planned.
February 19
On February 18, President Donald Trump announced plans to impose 25% tariffs on imports of automobiles, pharmaceuticals, and semiconductors, effective April 2. This move aims to address the U.S. trade deficit and encourage companies to relocate manufacturing to the United States. The announcement has raised concerns about potential trade tensions, particularly with the European Union, as discussions are underway to prevent a trade war. European automotive and pharmaceutical sectors experienced stock market declines following the news.
February 13
On February 13, President Donald Trump announced a plan to implement “reciprocal tariffs,” aiming to match the import duties that other countries impose on U.S. products. This initiative seeks to address trade imbalances by equalizing tariff rates and countering non-tariff barriers such as value-added taxes (VAT), government subsidies, and restrictive regulations that hinder U.S. exports. The administration will assess the trade barriers each country imposes, and set corresponding U.S. tariff rates accordingly. While the plan is designed to promote fair competition for American manufacturers, it raises concerns about potential economic uncertainty, including higher costs for U.S. consumers and businesses, as well as the possibility of triggering retaliatory measures from trading partners. The specific tariff rates and targeted products will be determined after further review by top Cabinet officials.
February 11 – UPDATED
On February 10, President Donald Trump announced the imposition of 25% tariffs on all foreign steel and aluminum imports, effective March 4, without exceptions for any countries. “Derivative” products will also be subject to the tariffs. This decision reinstates and expands upon similar tariffs first introduced in 2018. The primary objectives are to bolster domestic production, safeguard industries critical to economic and national security, and address potentially unfair trade practices, particularly from nations like China. The administration contends that these tariffs will create fairer trade conditions by countering foreign subsidies and dumping practices that disadvantage U.S. producers. However, the move has drawn criticism from allies and trade partners, including the European Commission and Canada, who deem the tariffs unjustified, and are considering retaliatory measures.
February 4
In response to President Trump’s recent 10% tariff on Chinese imports, China has imposed additional tariffs of 10% to 15% on U.S. products, including coal, liquefied natural gas, crude oil, agricultural machinery, and large vehicles. These measures, effective February 10, have heightened concerns about a potential full-scale trade war between the two largest global economies. President Trump is expected to speak with Chinese President Xi Jinping soon to discuss how to avoid such a situation.
The additional tariffs from China would apply to about $20 billion of annual imports coming from the U.S. However, the tariffs enacted by Trump on February 1 cover about $450 billion of Chinese goods.
February 3 – UPDATED
President Donald Trump has announced a one-month delay in imposing a 25% tariff on both Mexican and Canadian imports following discussions with Mexican President Claudia Sheinbaum Pardo and Canadian Prime Minister Justin Trudeau. During this period, the U.S. will engage in further negotiations with both nations to address key issues, including immigration, border security, and drug trafficking. Mexico has committed to deploying 10,000 National Guard troops to its northern border, while Canada will enhance border security and combat fentanyl trafficking. Meanwhile, the U.S. is proceeding with a 10% tariff on Chinese imports.
Although Canada had announced retaliatory measures, including a 25% tariff on certain U.S. exports, these may be adjusted depending on the outcome of ongoing discussions between Trump and Trudeau. Canada is also considering further actions, such as export restrictions on critical minerals and energy products, and limiting American companies’ access to government contracts. The situation remains fluid as negotiations continue.
February 2
On February 1, President Donald Trump signed executive orders imposing significant tariffs on imports from Mexico, Canada, and China. Imports from Mexico and Canada are now subject to a 25% tariff, with the exception of Canadian energy exports, which face a 10% tariff (acknowledging some level energy interdependence). Imports from China are subject to a 10% tariff.
These measures, enacted under the International Emergency Economic Powers Act, are set to take effect on February 4. The administration cited concerns over illegal immigration and the influx of fentanyl as primary reasons for these tariffs. In response, Canada and Mexico have announced plans for retaliatory tariffs on U.S. goods, raising concerns about a potential trade war.
January 27
Canada Prime Minister Justin Trudeau recently responded to U.S. President Donald Trump’s renewed threat of imposing 25% tariffs on Canadian imports. Trudeau emphasized that such measures would harm both Canadian industries and American consumers by raising costs on products like automobiles, lumber, and oil. He affirmed Canada’s readiness to impose retaliatory tariffs, matching U.S. measures dollar-for-dollar, while also considering adjustments to energy supplies destined for the U.S.
In a press conference, Trudeau reiterated the strong economic ties between the two countries, arguing that these tariffs would disrupt markets on both sides of the border. Echoing these sentiments, Canada’s Deputy Prime Minister Chrystia Freeland warned of the economic fallout from escalating trade tensions, highlighting the government’s resolve to defend national interests.
The Prime Minister also addressed some of Trump’s justifications for the proposed tariffs, such as illegal immigration and fentanyl trafficking, asserting that Canada plays a minimal role in these issues. With his tenure ending in March, Trudeau reassured Canadians of a robust strategy to counter any economic challenges posed by U.S. trade actions.
January 22
President Donald Trump announced plans to impose a 10% tariff on imports from China starting February 1, as revealed during a White House press briefing yesterday. He also reiterated his intent to implement 25% tariffs on goods from Canada and Mexico by the same date, echoing promises made during his re-election campaign.
Initially, Trump had pledged to issue an executive order on his first day in office to enforce these tariffs. However, he opted on Monday to sign a memorandum instructing federal agencies to review U.S. trade policies instead.
During the briefing, the President linked the 10% tariff on China to concerns about fentanyl entering Mexico and Canada through Chinese imports. This move reflects his administration’s focus on addressing trade imbalances and curbing illicit drug flows.
January 21
Yesterday, President Donald Trump issued a memorandum that could lead to new tariffs. Federal agencies have been directed to evaluate U.S. trade policies, and are to report their findings and recommendations by April 1. While Trump previously vowed to impose tariffs on Canada, Mexico, and China immediately upon taking office, the memorandum signals a more measured approach.
The directive tasks the Secretaries of Commerce, Treasury, and the U.S. Trade Representative with examining the causes of the country’s trade deficit and proposing solutions, including global tariffs. The President also ordered reviews of the U.S.-Mexico-Canada Agreement (USMCA), trade practices of other countries, and China’s trade agreement, to assess the need for increased tariffs.
Additionally, President Trump proposed establishing an “external revenue service” to manage the collection of tariffs, duties, and other similar revenue. In his inauguration speech, he emphasized overhauling U.S. trade systems, focusing on taxing foreign nations to bolster domestic manufacturing.
December 12
Starting January 1, 2025, the Biden administration will implement higher Section 301 tariffs on Chinese imports of solar wafers, polysilicon, and tungsten products, according to the U.S. Trade Representative (USTR). Solar wafers and polysilicon, vital for solar energy production, will face a 50% tariff, while tungsten products, including bars and sheets, will see a 25% tariff.
The USTR’s Katherine Tai stated the increases aim to counter China’s harmful trade practices and support domestic investments in clean energy and resilient supply chains. The move builds on September’s tariff hikes, which included 100% duties on electric vehicles and 50% on semiconductors.
The solar industry largely supports these tariffs, though reactions to tungsten duties are mixed. More tariffs targeting Chinese goods are expected, including the ones threatened by President-elect Donald Trump last month.
Businesses are responding by exploring supply chain diversification to reduce reliance on Chinese materials. Retailers like Dick’s Sporting Goods and Lowe’s are revisiting strategies from Trump first administration to manage tariff impacts. These developments highlight the evolving U.S.-China trade dynamics and their implications for global manufacturing and supply chains.
December 3
President-elect Donald Trump has issued a significant threat to BRICS countries, warning of a 100% tariff on their exports to the U.S. if they pursue plans to reduce reliance on the U.S. dollar. The BRICS group –composed of Brazil, Russia, India, China, and South Africa – has recently expanded to include Egypt, Ethiopia, Iran, and the UAE. These nations aim to challenge Western financial dominance, with discussions about creating a BRICS currency gaining momentum, although no official consensus has been reached.
Trump’s statement targets the bloc’s potential “de-dollarization” efforts, asserting the importance of the dollar as the global reserve currency.
BRICS countries are classified as emerging economies with significant global influence due to their economic size, growth potential, and collaborative focus on reshaping international systems. While the group’s cohesion is often debated, shared dissatisfaction with Western-dominated institutions has united them on various economic fronts.
November 26
After much industry-wide speculation, President-elect Donald Trump recently confirmed on Truth Social that he plans to implement significant tariffs upon taking office. He proposed a 25% tariff on all imports from Mexico and Canada, and an additional 10% on goods from China. Trump cited concerns over illegal immigration, fentanyl smuggling, and maintaining economic leverage as motivations for these measures. He intends to enact these tariffs through executive orders on his first day in office, aiming to address trade imbalances and border security issues.
The concern is that tariffs will negatively affect U.S. consumers, especially in automotive, since that industry is heavily reliant on imports from Canada and Mexico.
Trump takes office on January 20, which gives importers too short of a window to front-load imports, particularly with a two-week transit from China to ports on the U.S. West Coast.
It was somewhat surprising to see Canada included in the proposed tariffs. Trump negotiated the USMCA in 2020, which was instituted to promote mostly duty-free trades between the U.S., Canada, and Mexico, so this would shake up relations. However, shortly after Trump’s announcement of the tariffs, Canadian Prime Minister Justin Trudeau initiated a “constructive call” with him to discuss border security issues.
Whether Donald Trump actually intends to actually execute these tariffs remains to be seen. Less than two months out from inauguration, he could be using the threat of tariffs as a negotiation ploy and a way to spawn action with affected American companies.
