Trump's trade tariffs and threats

On Monday, the United States and China will meet

The two sides have agreed to reduce reciprocal tariffs temporarily

As the two largest economies in the world try to end their damaging trade war that has increased fears of a possible recession, and caused a U.S. economy contraction during the first quarter.

The U.S. is reducing the extra tariffs that it imposed in April of this year on Chinese imports to 30%, from 145%. Chinese duties on U.S. imported goods will also fall to 10%, from 125%. The new measures will be in effect for 90 days following a meeting held between the two countries in Geneva.

After a series of meetings between U.S. officials and trading partners, after Trump's April 2 tariffs of 10% on most countries were suspended for 90 days as well as the suspension of higher tariffs on many other trading partners.

On July 8, the duties will now be imposed.

The U.S. China deal comes just days after Donald Trump and Keir starmer, the British Prime Minister, announced a limited trade agreement. This leaves Trump's 10% tariffs for British exports in place.

As part of the agreement, Britain agreed to reduce its tariffs from 5.1% to 1.8% and to provide greater access to U.S. products.

In recent months, Trump has imposed tariffs of 25% on steel, aluminium and autos. He also levied 25% on imports coming from Canada and Mexico.

Trump's second move was to impose a tariff of 100% on films produced outside the United States that are sent into the country.

Here's a summary of Trump’s trade-related actions and threats to date.

BROAD TARIFFS

Trump's vision is based on a gradual roll-out of tariffs that will apply to all U.S. imported goods.

Trump's economic team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They also had to address non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles as well as value added taxes that raise their price.

Specific COUNTRIES

Trump's tariff proposal targets several key trading partners.

MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl.

Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products.

Canada retaliated with 25% tariffs against US imports worth C$30 billion (21,13 billion dollars), including orange juice and peanut butter. Other products include beer, coffee, motorcycles, appliances, and motorbikes.

The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, steel and aircraft, as well as beef and pork.

U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena.

In response to Trump's tariffs on steel and aluminum, Canada announced that it would impose retaliatory duties of C$29.8 Billion ($20 Billion) on U.S. imports.

The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports.

Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts.

CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S.

On March 4, he imposed another 10% tariff on Chinese products.

China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions on exports for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs.

Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products.

Trump replied that the U.S. will impose an extra 50% tariff on China, if Beijing doesn't withdraw its retaliatory duties on the U.S. and said "all discussions with China regarding their requested meetings with the us will be terminated."

Washington's new round of tariffs raised duties on China to 145%. Beijing then increased levies against U.S. products by 125% as a result.

In Geneva, both countries agreed on Monday to temporarily reduce reciprocal tariffs. The U.S. is lowering tariffs placed on China in April from 145% to 30% and Chinese duties will drop from 125% to 10%. The new measures will be in effect for 90 days.

Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S.

Steel, aluminum, and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is also a leading exporter of medical equipment.

The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to prioritise negotiations and to strike back with targeted countermeasures the following week.

In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April.

Trump announced on March 13 that he would impose a tariff of 200% on European wines and spirits as a response to EU plans to levy tariffs on American whisky and other products in the next month.

BRITAIN: In May, Trump and British Prime Minster Starmer announced a limited trade agreement. The agreement leaves the 10% tariffs Trump imposed on British exports in place and expands access to agricultural products for both countries. It also lowers U.S. import duties that were prohibitive on British auto exports.

Trump imposed reciprocal tariffs of up to 50% in April on goods from 57 trading partner countries, including the European Union. He then paused them a few days later to give time for negotiations to July 9.

The UK and U.S. have said that this agreement lowers the average British tariff on U.S. products to 1.8%, from 5.1%. However, it keeps the 10% tariff in place on British goods.

An official from the UK noted that Washington's demands for a restructuring of Britain's Digital Services Tax, which is levied as 2% of UK revenues for online marketplaces, were not included in the deal.

PRODUCTS

AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3.

On April 29, he issued a couple of orders that aimed to reduce the impact of his auto tariffs by combining credits with relief from other materials levies.

The Republican President has given automakers two years to increase the percentage of domestic components used in U.S.-built vehicles.

Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products, ranging from nuts and bolts, to bulldozers blades, to soda cans.

More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil.

Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods.

Just over half of the refined copper that is consumed in the U.S. each year is produced domestically.

SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and would increase substantially over a period of one year. He did not, however, specify the date when they would be implemented.

Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients.

LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products.

ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs American whiskey and other products. This is itself a retaliation for Trump's 25% tariffs which took effect on steel and aluminium imports the day before.

PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, the president said that duties were "under review." He warned that the tariffs could be "at a new level you haven't seen before."

ELECTRONICS - Trump exempted smartphones, computers, and other electronics, mostly from China, from the steep tariffs. This was a relief to major technology companies such as Apple, Dell Technologies, and other importers.

This move exempts certain electronics from Trump's baseline 10% tariffs on most goods imported from countries other than China.

(source: Reuters)