Trump ramps up tariffs

The next round of tariffs under Trump

From today, the US is imposing the following new tariffs on imported goods (these tariffs are in addition to any tariffs that may have existed before Trump took office):

25% on imports from Mexico and Canada (exception: energy imports from Canada only 10%). These tariffs were already threatened at the beginning of February, but then briefly suspended for a month. They essentially end the USMCA free trade area, which Trump himself had negotiated as the successor to NAFTA (North American Free Trade Area).

20% on imports from China (increase of the tariff rate of 10% imposed in February)

The following have already been announced:

25% on aluminum and steel from March 12

The following are also under discussion:

25% on imports from the EU

25% on automobiles, pharmaceutical products, semiconductors, and wood products.

In addition, there are the “reciprocal tariffs” that Trump wants to use to respond to higher tariffs abroad and alleged trade barriers. There could be more news on this front on April 2. However, because the issue is very complex, these tariffs are more likely to come into force later or will initially apply only to the most important trading partners.

China strikes back...

The Chinese authorities have announced a series of countermeasures. For example, an additional duty of 15% will be imposed on certain agricultural products (chickens, wheat, corn) and 10% on others (e.g. soy and sorghum). In addition, some American companies will be placed on an export control list, while others will be placed on a list of “unreliable” entities.

In contrast to the US tariffs, China is not imposing a general additional tariff on all imports from China, but is proceeding selectively. Its focus on agricultural products is also likely to be aimed at hitting the economies of US states governed by Republicans. China is an important market for US exports of soy and sorghum in particular.

For full text see attached PDF-Version.