NEW YORK (AP) — Tariffs initiated by U.S. President Donald Trump have sparked a trade war with foreign nations. The uncertainty surrounding new levies has caused escalating tensions in global trade. Since assuming office less than two months ago, Trump has imposed heavy import taxes on goods from America’s top trading partners — Mexico, Canada, and China. Economists warn of potential consequences on businesses and economies worldwide, with consumers likely facing higher prices as a result.
Trump’s past term saw the launch of a trade war, particularly targeting China. The exchange of tariffs between the two countries affected billions of dollars’ worth of goods, with accusations from the U.S. against China for unfair trade practices. Trump imposed tariffs on Chinese goods, prompting retaliatory measures from Beijing on various U.S. products. Additionally, Trump introduced tariffs on solar panels, washing machines, steel, and aluminum imports, leading to increased tensions with other trading partners.
Under President Joe Biden, most of Trump’s tariffs on China remained intact, with the administration claiming a more targeted approach. New restrictions on semiconductor sales to China were imposed, with subsequent expansions and Chinese bans on U.S. high-tech material exports. Biden also raised tariffs on Chinese imports like electric vehicles, solar cells, and medical equipment. In July, tariffs on steel and aluminum from Mexico were implemented to prevent circumvention of import taxes by China.
During the 2024 presidential campaign, both Biden and Trump showcased their stances on China, with promises of tougher trade policies. Trump proposed significant tariffs on Chinese imports and hinted at broader tariffs on all imports if re-elected. The trade policies of both candidates influenced the ongoing trade dispute with China and other nations.
Manufacturers who move their operations outside the U.S. are a concern for the Biden-Harris administration. While they use tariffs to target China, both Biden and Vice President Kamala Harris, who becomes the Democratic nominee after Biden withdraws from the race, argue against Trump’s plan for broad tariffs worldwide. Harris criticizes Trump’s proposal for tariffs, calling it a “national sales tax,” and warns that a 20% tariff applied across the board could increase expenses for an average family by nearly $4,000 annually.
Fast forward to November 2024: Trump wins the U.S. presidential election. He continues to pledge significant tariff increases leading up to his return to office in January.
On January 20, during his inauguration, Trump renews his commitment to imposing tariffs and taxes on foreign nations to benefit American citizens. He also mentions plans to establish an agency called the External Revenue Service.
In his first day back in office, Trump announces plans to impose 25% tariffs on imports from Canada and Mexico starting on February 1, while delaying details on taxing Chinese imports.
Subsequently, tensions escalate as Trump threatens 25% tariffs on all imports from Colombia after a dispute with President Gustavo Petro. Petro responds with retaliatory measures, but the situation is eventually resolved, leading to a pause in the trade conflict.
On February 1, Trump signs an executive order to impose tariffs on imports from Mexico, Canada, and China. He declares a national emergency to justify this action, citing concerns over immigration and drug trafficking.
The repercussions are swift, with all three countries expressing outrage and threatening retaliatory actions. Trump later agrees to a 30-day pause on tariffs against Mexico and Canada, as both countries take steps to address border security and drug trafficking concerns.
Despite the temporary halt, Trump’s 10% tariffs on Chinese imports take effect on February 4, prompting China to retaliate with its own tariffs on various American goods.
Further escalation occurs on February 10 when Trump announces plans to increase steel and aluminum tariffs. The exemptions on steel are removed, subjecting all steel imports to a minimum 25% tax, and aluminum tariffs are raised to 25% from the initial 10%.
On February 13, Trump unveils a plan for “reciprocal” tariffs, aiming to match the tax rates imposed by other countries on imports. Economists caution that such measures could disrupt global trade patterns and pose challenges for businesses worldwide.
The text indicates that more countries, such as India, may not be exempt from increased tariffs. Furthermore, in the upcoming weeks, President Trump proposes that European nations could potentially face a 25% tariff as part of these initiatives.
On February 25, Trump signed an executive order directing the Commerce Department to assess the necessity of imposing a tariff on imported copper to safeguard national security. He highlights the material’s essential role in U.S. defense, infrastructure, and emerging technologies.
Subsequently, on March 1, Trump issues another executive order tasking the Commerce Department with evaluating the need for tariffs on lumber and timber to protect national security. He argues that a robust supply of wooden products is crucial for the construction industry and military in the U.S.
By March 4, Trump’s 25% tariffs on imports from Canada and Mexico come into effect, with a reduced levy of 10% on Canadian energy. Additionally, he doubles the tariff on all Chinese imports to 20%.
All three countries vow to retaliate. Canadian Prime Minister Justin Trudeau announces tariffs on over $100 billion worth of American goods over 21 days. Mexican President Claudia Sheinbaum pledges retaliatory tariffs without specifying targeted products immediately, signaling a desire to de-escalate tensions.
Meanwhile, China imposes tariffs of up to 15% on various key U.S. agricultural exports, expands export controls on U.S. companies, and enforces other restrictions on about two dozen American businesses.
On March 5, Trump grants a one-month exemption for new tariffs affecting goods from Mexico and Canada for U.S. automakers following discussions with leaders of Ford, General Motors, and Stellantis.
In a broader move on March 6, Trump delays 25% tariffs on many imports from Mexico and some from Canada for a month. However, he still intends to impose reciprocal tariffs starting on April 2. The decision to postpone tariffs is attributed to progress made on border security and drug smuggling, with Trump acknowledging Sheinbaum’s efforts.
The actions taken by Trump slightly ease tensions with Canada, albeit concerns and uncertainty about the trade conflict persist. After initially imposing $30 billion Canadian in retaliatory tariffs on U.S. goods, the Canadian government announces the suspension of a second wave of retaliatory tariffs totaling $125 billion Canadian.
On March 10, China responds to Trump’s tariffs by imposing an additional 15% tax on key American agricultural products like chicken, pork, soybeans, and beef. The escalating trade disputes cause stock prices to decline as investors express concerns about the potential impact on the American economy.
China’s retaliatory tariffs are a reaction to Trump’s decision to increase the levy on Chinese imports to 20% on March 4. The Chinese Commerce Ministry previously stated that goods already in transit would be exempt from the retaliatory tariffs until April 12.
