President Donald Trump’s decision on tariffs surprised financial markets and stirred uncertainty in the global economy, following a sudden suspension of some duties on January 20th.
Key developments include:
February 1 – Trump calls for a 25% tariff on imports from Mexico and most of Canada, a 10% tariff on goods from China, and measures to reduce fentanyl trafficking and illegal immigration into the U.S.
February 3 – Trump pauses tariff threats against Mexico and Canada, agreeing to a 30-day suspension in exchange for enhanced border security and crime control. No similar agreement has been reached with China.
February 7 – Trump postpones tariffs on low-cost packages from China, directing the Department of Commerce to set up procedures for handling and collecting tariffs on them.
February 10 – An increase in steel and aluminum tariffs to 25% is announced, stating there will be “no exceptions or exemptions.”
March 3 – A 25% tariff on goods from Mexico and Canada will take effect March 4, along with a doubling of the fentanyl-related tariff on all Chinese imports to 20%.
March 5 – After discussions with CEOs from General Motors, Ford, and Stellantis, Trump agrees to delay tariffs on certain vehicles made in Canada and Mexico for a month.
March 6 – Goods from Canada and Mexico will temporarily be exempt from the 25% tariff under the North American trade agreement.
March 26 – The announcement of a 25% tariff on imported cars and light trucks is made.
April 2 – Trump announces a baseline global tariff of 10% on all imports, with higher duties for significant U.S. trading partners.
April 9 – Amidst a tumultuous financial market reaction, Trump suspends most tariffs for 90 days, wiping trillions off global markets.
The 10% tariff on almost all U.S. imports remains, but Trump’s move raises tariffs on Chinese imports to 125%, escalating the total obligations on Chinese goods, including fentanyl-related tariffs, to 145%.
April 13 – The administration approves unexpected tariff exclusions for smartphones, computers, and other electronics primarily imported from China.
April 22 – A national security investigation into drug and semiconductor imports is initiated, with plans to impose tariffs on both sectors under Section 232 of the Trade Act of 1962.
May 4 – A 100% tariff is imposed on all films produced outside the U.S.
May 9 – Trump and British Prime Minister Kiel Starmer unveil a limited bilateral trade agreement, imposing a 10% tariff on UK exports and expanding agricultural access modestly while restricting U.S. obligations on UK auto exports.
May 12 – The U.S. and China agree to a temporary reduction in mutual tariffs. Under a 90-day ceasefire, U.S. tariffs on Chinese imports are set to drop from 145% to 30%, while China’s tariffs on U.S. imports will decrease from 125% to 10%.
