US President Donald Trump’s tariffs are changing US trade policy and upending decades of free trade agreements, both with allies and competitors.
Trump is now less than a week away from potentially imposing retaliatory tariffs on all US trading partners. This could happen as early as April 2, a date Trump is now calling “Liberation Day.” The retaliatory tariffs are intended to fulfill an oft-repeated campaign promise and boost government revenue as Republicans prepare for a tax and spending bill.
On Friday, Trump suggested there could be some “flexibility” in how he imposes the tariffs, though he stressed that he doesn’t want to grant too many exemptions.
Here are the latest on a variety of related issues:
Steel and Aluminum: The US’s 25% tariff on steel and aluminum imports from all countries took effect on Wednesday, March 12.
European Union: The EU has responded to the metal tariffs by imposing retaliatory tariffs on $28 billion worth of US goods starting in April, bringing Trump’s trade war to the continent. However, on Thursday, the EU delayed the implementation of some of those tariffs until mid-April, including a 50% duty on American whiskey, which had previously prompted Trump to threaten a 200% tariff on European liquor.
Canada and Mexico: Trump’s 25% tariffs on its northern and southern US neighbors took effect on Tuesday, March 4. Just two days later, Trump confirmed that the US would suspend tariffs on goods and services that comply with the United States-Mexico-Canada Agreement (USMCA) until April 2. In response, Canada imposed new tariffs on about $20 billion worth of US goods. The two countries have agreed to start new trade talks.
China: Trump has imposed a blanket new tariff of around 20% on top of the existing 10% tariff that went into effect in his first term. China has responded by imposing duties of up to 15% on US agricultural products such as chicken and pork, which took effect on Monday, March 10.
