New York: Long-threatened tariffs from US President Donald Trump have plunged the country into trade wars abroad — all while on-again, off-again new levies continue to escalate uncertainty.
Trump is no stranger to tariffs. He launched a trade war during his first term, taking particular aim at China by putting taxes on most of its goods.
Beijing responded with its own retaliatory tariffs on US products ranging from fruit to automotive imports.
Meanwhile, Trump also used the threat of more tariffs to force Canada and Mexico to renegotiate a North American trade pact, called the US-Mexico-Canada Agreement, in 2020.
When President Joe Biden took office, he preserved most of the tariffs Trump previously enacted against China, in addition to imposing some new restrictions — but his administration claimed to take a more targeted approach.
Fast-forward to today, and economists stress there could be greater consequences on businesses and economies worldwide under Trump’s more sweeping tariffs this time around — and that higher prices will likely leave consumers footing the bill.
There’s also been a sense of whiplash from Trump’s back-and-forth tariff threats and responding retaliation seen over the last few months.
Here’s a timeline of how we got here:
January 20
Trump is sworn into office. In his inaugural address, he again promises to “tariff and tax foreign countries to enrich our citizens”. And he reiterates plans to create an agency called the External Revenue Service, which has yet to be established.
On his first day in office, Trump also says he expects to put 25 per cent tariffs on Canada and Mexico starting February 1, while declining to immediately flesh out plans for taxing Chinese imports.
January 26
Trump threatens 25 per cent tariffs on all Colombia imports and other retaliatory measures after President Gustavo Petro rejects two US military aircraft carrying migrants to the country, accusing Trump of not treating immigrants with dignity during deportation.
In response, Petro also announced a retaliatory 25 per cent increase in Colombian tariffs on US goods. But Colombia later reversed its decision and accepted the flights carrying migrants. The two countries soon signalled a halt in the trade dispute.
February 1
Trump signs an executive order to impose tariffs on imports from Mexico, Canada and China — 10 per cent on all imports from China and 25 per cent on imports from Mexico and Canada starting February 4.
Trump invoked this power by declaring a national emergency — ostensibly over undocumented immigration and drug trafficking.
The action prompted swift outrage from all three countries, with promises of retaliatory measures.
February 3
Trump agrees to a 30-day pause on his tariff threats against Mexico and Canada, as both trading partners take steps to appease Trump’s concerns about border security and drug trafficking.
February 4
Trump’s new 10 per cent tariffs on all Chinese imports to the US still go into effect. China retaliated the same day by announcing a flurry of countermeasures, including sweeping new duties on a variety of American goods and an anti-monopoly investigation into Google.
China’s 15 per cent tariffs on coal and liquefied natural gas products, and a 10 per cent levy on crude oil, agricultural machinery and large-engine cars imported from the US, take effect February 10.
February 10
Trump announces plans to hike steel and aluminum tariffs starting March 12. He removes the exemptions from his 2018 tariffs on steel, meaning that all steel imports will be taxed at a minimum of 25 per cent, and also raises his 2018 aluminum tariffs from 10 per cent to 25 per cent.
February 13
Trump announces a plan for “reciprocal” tariffs — promising to increase US tariffs to match the tax rates that other countries charge on imports “for purposes of fairness”.
Economists warn that the reciprocal tariffs, set to overturn decades of trade policy, could create chaos for global businesses.
Beyond China, Canada and Mexico, he later indicates that additional countries, such as India and European nations, won’t be spared from higher tariffs.
February 25
Trump signs an executive order instructing the Commerce Department to consider whether a tariff on imported copper is needed to protect national security. He cites the material’s use in US defence, infrastructure and emerging technologies.
March 1
Trump signs an additional executive order instructing the Commerce Department to consider whether tariffs on lumber and timber are also needed to protect national security, arguing that the construction industry and military depend on a strong supply of wooden products in the US.
March 4
Trump’s 25 per cent tariffs on imports from Canada and Mexico go into effect, though he limits the levy to 10 per cent on Canadian energy. He also doubles the tariff on all Chinese imports to 20 per cent.
All three countries promise retaliatory measures. Canadian Prime Minister Justin Trudeau announced tariffs on more than USD 100 billion of American goods over the course of 21 days.
And Mexican President Claudia Sheinbaum says her country would respond with its own retaliatory tariffs on US goods without specifying the targeted products immediately, signalling hopes to de-escalate.
China, meanwhile, imposes tariffs of up to 15 per cent on a wide array of key US farm exports, set to take effect March 10. It also expands the number of US companies subject to export controls and other restrictions by about two dozen.
March 5
Trump grants a one-month exemption on his new tariffs impacting goods from Mexico and Canada for US automakers.
The pause arrives after the president spoke with leaders of the “Big 3” automakers — Ford, General Motors and Stellantis.
March 6
In a wider extension, Trump postponed 25 per cent tariffs on many imports from Mexico and some imports from Canada for a month. But he still plans to impose “reciprocal” tariffs starting April 2.
Trump credited Sheinbaum with making progress on border security and drug smuggling as a reason for again pausing tariffs. His actions also thaw relations with Canada somewhat, although outrage and uncertainty remains.
Still, after its initial retaliatory tariffs of USD 30 billion (USD 21 billion) on US goods, the government said it had suspended its second wave of retaliatory tariffs worth USD 125 billion (USD 87 billion).
March 10
China’s retaliatory 15 per cent tariffs on key American farm products — including chicken, pork, soybeans and beef — take effect. Goods already in transit are set to be exempt through April 12, per China’s Ministry of Commerce Ministry’s previous announcement.
March 12
Trump’s new tariffs on all steel and aluminum imports go into effect. Both metals are now taxed at 25 per cent across the board — with Trump’s order to remove steel exemptions and raise aluminum’s levy from his previously-imposed 2018 import taxes.
The European Union takes retaliatory trade action promising new duties on US industrial and farm products. The measures will cover goods from the United States worth some 26 billion euros (USD 28 billion), and not just steel and aluminum products, but also textiles, home appliances and agricultural goods.
Motorcycles, bourbon, peanut butter and jeans will be hit, as they were during Trump’s first term. The 27-member bloc later says it will delay this retaliatory action until mid-April.
Canada, meanwhile, announces plans to impose retaliatory tariffs worth Canadian USD 29.8 billion (USD 20.7 billion) on US imports, set to go into effect March 13.
March 13
Trump threatens a 200 per cent tariff on European wine, Champagne and spirits if the European Union goes forward with its previously-announced plans for a 50 per cent tariff on American whiskey.
March 24
Trump says he will place a 25 per cent tariff on all imports from any country that buys oil or gas from Venezuela, in addition to imposing new tariffs on the South American country itself, starting April 2.
The tariffs would most likely add to the taxes facing China, which in 2023 bought 68 per cent of the oil exported by Venezuela, per the US Energy Information Administration. But a number of countries also receive oil from Venezuela — including the United States itself.
March 26
Trump says he is placing 25 per cent tariffs on auto imports, a move that the White House claims would foster domestic manufacturing. But it could also put a financial squeeze on automakers that depend on global supply chains.
These auto imports will start being collected April 3 — starting with taxes on fully imported cars. The tariffs are set to then expand to applicable auto parts in the following weeks through May 3.
April 2
Trump announces his long-promised “reciprocal” tariffs — declaring a 10 per cent baseline tax on imports across the board starting April 5, as well as higher rates for dozens of nations that run trade surpluses with the US to take effect April 9.
Among those steeper levies, Trump says the US will now charge a 34 per cent tax on imports from China, a 20 per cent tax on imports from the European Union, 25 per cent on South Korea, 24 per cent on Japan and 32 per cent on Taiwan.
The new tariffs come on top of previously imposed levies, including the 20 per cent tax Trump announced on all Chinese imports earlier this year.
Meanwhile, for goods from Canada and Mexico, the White House says USMCA-compliant imports can continue to enter the US duty-free. Once the two countries have satisfied Trump’s demands on immigration and drug trafficking, the White House adds, the tariff on the rest of their imports may drop from 25 per cent to 12 per cent.
AP
