It has been a rollercoaster for trade and the economy since the start of this year. Here is a quick look on what took place in the tariff world since February 2025. In the U.S. there have been several significant tariff changes affecting imports from key trading partners, including China, Canada, and Mexico. These measures have led to retaliatory actions and heightened global trade tensions.
Below is a summary of the enacted and upcoming tariff changes:
Tariff Increases on Imports from China and Hong Kong
- February 4, 2025: The U.S. imposed a 10% tariff on all imports from China and Hong Kong.
- March 4, 2025: The tariff rate was increased to 20% from the original 10%.
Tariff Increases on Imports from Canada and Mexico
- March 4, 2025: The U.S. imposed a 25% tariff on imports from Canada and Mexico. However, Canadian energy products, such as crude oil and natural gas, are subject to a reduced 10% tariff. Goods that qualify under the United States-Mexico-Canada Agreement (USMCA) rules of origin are exempt from these additional tariffs.
Tariffs on Steel and Aluminum Imports
- March 12, 2025: A 25% tariff on global steel and aluminum imports was implemented, affecting major suppliers, including Canada, Mexico, Brazil, and South Korea.
Tariff on Automobiles and Automobile Parts
- April 3, 2025: Adjusting Imports of Automobiles and Automobile Parts into the United States, imposing a 25 percent ad valorem tariffs on certain imports of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks from all countries, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (Section 232)
“Liberation Day” for Tariffs
On April 2, 2025, President Donald Trump’s so-called “Liberation Day”, Trump held a news conference and made announcements on upcoming tariff changes:
- April 5, 2025: A reciprocal tariff imposed at 10% for all articles that are imported into the customs territory of the U.S.
- April 7, 2025: President Donald Trump threatened an additional 50% tariff on Chinese goods if China does not reverse its 34% retaliatory tariff on U.S. products by April 8th.
- April 9, 2025: Increased Tariffs on Specific Countries: The U.S. will implement higher, country-specific tariffs on imports from 57 nations with significant trade deficits. These tariffs will exceed the universal 10% rate imposed earlier in April.
- April 9, 2025: After increased tariffs take effect on many countries at 12:01 AM, President Trump later pauses these higher tariffs for 90 days, while increasing tariffs on China to 125%.
These measures are part of the administration’s strategy to address trade imbalances and encourage domestic production. Businesses should monitor these developments closely and assess potential impacts on their operations.
Retaliatory Measures by Affected Countries
- China: In response to U.S. tariffs, China announced a 34% tariff on U.S. goods, effective April 10, 2025. China’s Commerce Ministry has condemned the U.S. actions and warned of further countermeasures to safeguard its interests.
- Canada and Mexico: Both countries have announced plans for retaliatory tariffs on U.S. goods, though specific details and implementation dates are pending.
The Impact on Businesses and the Economy
These tariff escalations have raised concerns about potential supply chain disruptions, increased operational costs, and the broader economic impact, including fears of a recession. Businesses are advised to monitor trade developments closely, reassess supply chains, and develop strategies to mitigate rising costs.
Stay tuned for more insights and updates with the changes coming up in the tariff world. MTS Customs Brokerage will keep the world up-to-date as there are many changes happening back-to-back.
