Trump’s Tariffs: Where Things Stand
Jeanne Whalen with the Wall Street Journal shared this great update today regarding the U.S. Trade Tariffs. Read the highlights here.
European Union
On May 23 Trump threatened to impose a 50% rate on the European Union starting June 1, arguing that trade negotiations with the bloc aren’t making progress. Two days later, he pushed back the tariff’s start date to July 9.
Trump initially imposed a 20% “reciprocal” tariff on EU imports, which he later paused for 90 days to allow for negotiations. A 10% baseline levy remains, and some specific EU products, including cars, are subject to higher tariff rates. The EU didn’t immediately
President Trump said the European Union would face a 50% tariff, and he threatened other companies like Apple and Samsung with tariffs for products made overseas. Photo: Kent Nishimura/Reuters
Apple Phones
Trump on May 23 warned Apple that foreign-made iPhones could face tariffs of up to 25%, saying phones for U.S. customers must be made domestically and not in India “or anywhere else.”
Reciprocal tariffs
On April 5, Trump imposed a 10% “reciprocal” tariff on imports entering the U.S. from nearly every country, saying they were necessary to rebalance trade. On April 9, he imposed even higher tariffs on countries and regions that he said engaged in unfair trade, including the EU and Japan, but hours later he paused them for 90 days. Trump didn’t give China this reprieve, instead ratcheting up tariffs on the nation to a total of 145%.
The White House said some countries and goods already hit by separate Trump tariffs in recent weeks were excluded from these reciprocal levies, including steel and aluminum imports; autos and auto parts; and Canada and Mexico (see details of those levies below). On April 11 the administration exempted smartphones and other electronics from the reciprocal tariffs.
China
On May 12, after talks in Geneva, the U.S. and China announced they were temporarily rolling back the tariffs they had imposed in recent months. The cuts will last for 90 days while the two sides continue negotiations.
The U.S. will cut its new 145% tariffs on Chinese goods to 30%. Levies that predate Trump’s second term will continue.
China will cut its new levies on U.S. goods to 10% from 125%. It has also agreed to suspend or cancel retaliatory, nontariff measures.
The U.K.
On May 8, Trump announced the outlines of a new trade deal with the U.K. Under the deal, which is still being negotiated, most U.K. goods will still be subject to the global 10% tariff the U.S. imposed on all countries in April. But U.K. steel and aluminum will be exempt from the U.S.’s 25% levy, and U.K. car tariffs will be lowered to 10% from 25% for the first 100,000 vehicles.
The U.K. committed to import more U.S. goods, including Boeing planes.
Autos
On April 3, the U.S. imposed a 25% tariff on imported autos. On May 3, it imposed 25% tariffs on imported auto parts, but said automakers can get a lower rate on those duties if the car is American-made.
Canada retaliated by imposing 25% import tariffs on vehicles that don’t comply with the U.S.-Mexico-Canada Agreement, or USMCA, starting April 9.
Fentanyl and immigration tariffs on Canada and Mexico
A 25% import tariff on goods from Mexico and Canada took effect March 4. Energy products and potash received a lower 10% tariff. Trump said this was to punish the countries for allowing fentanyl and unauthorized migrants to cross into the U.S.
The Trump administration later suspended those tariffs on goods that are eligible for duty-free trade under USMCA. Many goods entering the U.S. don’t comply with USMCA and are therefore subject to the new tariffs.
Canada responded by placing tariffs on $21 billion in U.S. imports, including fruits and vegetables, appliances and liquor.
Mexico initially planned retaliatory measures but didn’t enact them.
Steel and aluminum
The Trump administration imposed 25% tariffs on all steel and aluminum imports on March 12.
Canada retaliated by imposing tariffs on an additional $20.6 billion in U.S. imported goods.
On April 9, the EU retaliated against the steel and aluminum tariffs by approving duties on about $23 billion of U.S. goods, to begin April 15. But the bloc suspended the duties after Trump paused his reciprocal tariffs.
Buyers of Venezuelan oil
On March 24, Trump said the U.S. would impose a 25% tariff on goods from any country that buys oil or gas from Venezuela.
Drugs and microchips
On April 14, the administration said it had opened new investigations that could result in tariffs on pharmaceutical products and semiconductors.
Read the full article at https://www.wsj.com/economy/trade/trump-tariffs-list-products-canada-mexico-china-b41351df. The Logistics Report by the WSJ is also a great subscription resource: https://www.wsj.com/preference-center/newsletters.
