Less than three months into his presidency, Donald Trump’s trade policies are shaking up the global economy. Trump has made tariffs a key part of his economic and diplomatic strategy. During his campaign, he called tariffs “the most beautiful word in the dictionary.” Now, he’s putting them into action, sparking a trade war.
This isn’t Trump’s first trade war. During his first term, from 2017 to 2021, he targeted China, forcing Canada and Mexico to renegotiate a trade agreement that had been in place since 1994. Now, he’s revisiting those tactics, focusing on those same countries, as well as the European Union.
Here’s a look at the major tariff milestones since Trump took office:
Early Moves
Trump took office on January 20, promising to “impose tariffs and taxes on foreign countries to enrich our citizens.” He also proposed creating a new “Foreign Tax Service Agency,” though this hasn’t happened yet. On January 26, he threatened to slap 25% tariffs on Colombian imports after a dispute over deported citizens. Colombia retaliated, but both sides backed down.
On February 1, Trump signed an order imposing tariffs on imports from Mexico, Canada, and China. The tariffs on Chinese goods went into effect on February 4, prompting China to respond with tariffs on US products like gas and oil.
Escalating Tensions
On February 10, Trump imposed 25% tariffs on aluminum and steel imports, hitting the EU and Spain particularly hard. He also threatened “reciprocal tariffs” on countries with taxes like Europe’s VAT. The EU responded that these tariffs were “heading in the wrong direction” and promised a “firm” response.
On February 22, Trump threatened tariffs on countries that impose digital taxes on US companies, targeting Spain, France, and the UK. He later said EU products would face 25% tariffs, including cars. On March 3, he announced tariffs on agricultural imports, affecting Spain again, and doubled tariffs on Chinese imports to 20%.
Trade War Intensifies
On March 4, tariffs on Mexican and Canadian goods went into effect. Canada responded with 25% tariffs on US imports. The US delayed tariffs on cars from Mexico and Canada until April 2.
China retaliated against US tariffs on March 10, imposing tariffs on US goods like poultry and soybeans. The EU followed suit on March 12, applying tariffs worth up to €26 billion to US products. Trump threatened a 200% tariff on European wines and spirits if the EU didn’t back down.
Tariffs Expand
On March 24, Trump announced tariffs on countries buying oil and gas from Venezuela. On March 26, he said he’d impose 25% tariffs on non-US-made cars starting April 2, though parts made in Mexico and Canada were initially exempt.
The EU promised to analyze and respond to these tariffs. On April 2, Trump revealed a list of tariffs on products from various countries, including a 10% universal tariff and additional tariffs on specific countries. The EU faced a 20% tariff, China 34%, and Japan 24%.
A Temporary Reprieve
China responded with 34% tariffs on US products on April 4. Trump said he was open to easing tariffs if countries offered “something phenomenal” in return. On April 7, he threatened to raise tariffs on Chinese goods to 104% if China didn’t back down.
On April 9, Trump paused his reciprocal tariffs for 90 days, except for China, which faced a tariff hike to 125%. The EU also paused its countermeasures on April 10. China increased its tariffs on US products to 125% on April 11.
On April 14, Trump said he might temporarily exempt the auto industry from tariffs to give manufacturers time to adjust their supply chains. The US government also launched investigations into imports of computer chips, chip-making equipment, and pharmaceuticals.
Source: Original article.