Tariff war: Donald Trump vs. the world

THE UNITED STATES

February 1:

• 10% tariffs on Chinese imports are introduced due to the fentanyl problem (effective February 10);
• tariffs of 25% on almost all goods from Canada and Mexico were announced due to problems with fentanyl and illegal migration (to take effect on February 4).

February 3 – A 30-day pause on tariffs for Mexico and Canada is announced.

February 10 – tariffs of 25% on all steel and aluminum imports to the United States are announced (effective March 12).

March 4:

• 25% tariffs on all imports from Canada and Mexico come into effect, and 10% tariffs on Canadian energy;
• Import duties for China are doubled (to 20%).

March 4 – imports from Mexico that meet the requirements of the USMCA are exempt from tariffs.

March 5 – duties on imports of cars from Canada and Mexico are suspended for 30 days.

March 6 – imports from Canada that meet the requirements of the USMCA are exempt from tariffs.

March 24 – 25% duties are announced for any country that buys oil and gas from Venezuela.

March 27 – 25% duties on imports of cars (effective from April 3) and auto parts (effective in May) are announced.

April 2 – large-scale tariffs against the country’s trading partners are announced:

• minimum basic tariff on imports from all countries of 10% from April 5;
• individual reciprocal higher duties for dozens of countries from April 9.

April 8 – duties on Chinese imports are increased to 104%.

April 9 – a 90-day tariff pause was announced for all “reciprocal” duties for trading partners (this does not apply to sectoral tariffs), except for China (the total duty for the country increased to 145%).

World

February 1 – Canada announces two rounds of tariffs in response to the U.S. tariffs on 155 billion Canadian dollars.

February 4 – China announces 15% tariffs on imports of coal and LNG from the United States and 10% on imports of oil and other goods (effective February 10).

March 4:

• China announces tariffs on agricultural products from the United States and other measures (effective March 10);
• Canada’s first package of tariffs on goods from the United States worth CAD 30 billion comes into effect.

March 10 – Ontario (Canada) announces its own tariffs against the US, including a 25% surcharge on electricity exports to 3 states (suspended on March 11).

March 12 – The EU and Canada announce countermeasures in response to the US duties on steel and aluminum.

March 20 – The EU postpones the introduction of 50 percent duties on American whiskey until mid-April.

April 3 – Canada announces new countermeasures in response to the US auto duties, including a 25% duty on imports of vehicles from the United States that do not meet the requirements of the USMCA (effective April 9).

April 4 – China announces a 34% duty on U.S. goods starting April 10.

April 9 – China increases duties on U.S. goods to 84% starting April 10.

April 9 – The EU approves countermeasures in response to US tariffs on steel and aluminum imports worth about €21 billion (the first set was to take effect on April 15).

April 10 – The EU postpones the introduction of countermeasures for 90 days.

April 11 – China raised duties on imports from the United States to 125% effective April 12 and refused to respond to further tariff steps by the United States.

Back on January 20 this year, when Donald Trump’s second term in office began, the White House released a memorandum outlining the new administration’s trade priorities.  One of the points of this document was to address the problem of “unfair and unbalanced trade.” The relevant departments and agencies were to complete the study by April 1.

As early as February, the US President began announcing tariffs for the country’s largest trading partners – Canada, Mexico and China, which account for approximately 42% of the products imported to the United States, linking it to the problem of fentanyl and illegal migration. However, the introduction of these duties has been postponed or modified.

On April 2, the so-called “liberation day,” Donald Trump announced the introduction of large-scale reciprocal tariffs for trading partners around the world, with dozens of countries on the list. The minimum basic tariff on imports from all countries was set at 10%, which came into effect on April 5 this year.

In addition, individual reciprocal higher duties were introduced on April 9 for countries with which the US has the largest trade deficit. In particular, they initially amounted to 34% for China, 20% for the EU, 24% for Japan, 26% for India, 25% for South Korea, 10% for the UK, 17% for Israel, and 10% for Ukraine.

Earlier, 25 percent tariffs on all imports of steel and aluminum to the United States came into effect on March 12 and on imports of cars on April 3.

However, on April 9, Trump announced a complete pause for 90 days on all “reciprocal” tariffs for trading partners, with the exception of China. He said that he made this decision after more than 75 countries entered into negotiations and did not retaliate against the United States.

This step, in particular, was welcomed by the European Commission. EC President Ursula von der Leyen said that this was an important step towards stabilizing the global economy. The EU has postponed its countermeasures for 90 days. However, if the trade negotiations are successful, they will be applied, Europe emphasized. In addition, preparatory work continues on further countermeasures.

At the same time, China has not conceded to the United States in the tariff war, having previously made it clear that it would “fight to the end” if the United States continues in the same style. According to experts, the impact of this war will be felt by both sides. If for China, US tariffs exacerbate the problem of a slowing economy, the US will have to quickly replace Chinese imports. The global market is concerned about how trade flows may eventually be redistributed and where Chinese goods will be redirected.