US President Donald Trump’s tariff decisions since taking office in January 2025 have created uncertainty in the global economy.
A Shifting Landscape of Tariffs
On February 1, 2025, President Trump ordered a 25% tariff on imports from Mexico and Canada, and a 10% tariff on goods from China, citing concerns over fentanyl and illegal immigration. Tariffs on steel and aluminum were raised to 25% on February 10, 2025.
Further changes followed quickly. By March 3, 2025, the President announced that the 25% tariffs on goods from Mexico and Canada would grab effect the following day, and tariffs on all Chinese imports would double to 20%. A 25% tariff on imported cars and light trucks was unveiled on March 26, 2025.
On April 2, 2025, President Trump announced global tariffs with a baseline of 10% across all imports. However, this was partially reversed on April 9, 2025, when most country-specific tariffs were paused, though the 10% blanket duty remained in place. Tariffs on Chinese imports were briefly raised to 145% before a 90-day agreement with China saw the US cut tariffs to 30% and China reduce duties to 10% on May 12, 2025.
Throughout the summer and fall of 2025, a complex web of tariffs and trade deals emerged. Agreements were reached with Japan, South Korea, Indonesia, and the European Union, setting duties at 15% for most imports. Tariffs were as well imposed on goods from Vietnam, India, and on timber, lumber, and furniture. A 25% tariff was placed on certain AI chips on January 14, 2026.
Following the Supreme Court ruling on February 20, 2026, President Trump announced a 10% across-the-board tariff, which was then raised to 15% the following day. The European Commission responded on February 22, 2026, stating it would not accept an increase to the previously agreed-upon tariffs.
What’s Next?
further trade negotiations will occur as countries respond to the latest tariff adjustments. The European Commission’s rejection of increased tariffs could lead to further disputes. The US could also pursue alternative legal avenues to implement its trade goals. The situation remains fluid, and the long-term economic consequences are yet to be seen.
Frequently Asked Questions
What tariffs were initially imposed on Mexico and Canada?
On February 1, 2025, President Trump ordered a 25% tariff on imports from Mexico and Canada.
What did the US and China agree to in May 2025?
The US and China agreed to slash tariffs for 90 days. The US cut the extra tariffs imposed on Chinese imports to 30%, while China reduced duties on US imports to 10% from 125%.
What was the outcome of the Supreme Court case regarding Trump’s tariffs?
On February 20, 2026, the US Supreme Court struck down President Trump’s tariffs that he pursued under a law meant for use in national emergencies.
How will these ongoing trade disputes ultimately affect global markets?
