Trump\’s tariffs, threats, and delays: Current status

U.S. Trade Shake‑up: Trump’s New Tariff Strategy

Under President Donald Trump’s second term, the United States has introduced a series of tariff measures aimed at reshaping trade relationships with dozens of economies, including India, Canada and Mexico. The new policy, largely driven by the administration’s emergency powers, targets a broad range of sectors while granting selective exemptions.

Key Elements of the Tariff Framework

• Baseline “Reciprocal” Rate (10 %) – Established in April, this base levy remains in place for most partners.
• Higher “Reciprocal” Rates (>10 %) – Trump has dispatched letters specifying rates above 10 % for individual countries, such as Brazil, a trade‑deficit partner not included in the original list.
• Exempted Products – The administration has excluded pharmaceuticals, semiconductors and lumber from the reciprocal scheme. Other categories, such as steel, aluminum, copper, gold and silver, are also exempted.
• Targeted Low‑Rate Reductions – China has temporarily lowered tit‑for‑tat duties, while the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines have secured initial tariff agreements with Washington.

Implications for Canada and Mexico

Shortly after Trump returned to office, he imposed 25 % U.S. tariffs on Canadian and Mexican goods, with a reduced rate for Canadian energy. The tariffs were justified under a range of domestic concerns, including illegal immigration and fentanyl trafficking, while invoking the administration’s emergency powers.

Future Adjustments and Exclusions

• Additional “Reciprocal” Hikes (August 1) – Plans are in place to raise tariffs from 10 % to steeper levels for South Korea, India, Taiwan and other economies.
• Separate Action on Other Products – Certain sectors, for instance steel and copper, may face separate action under different authorities.
• Sanctioned Nations – Russia and North Korea are already facing sanctions; Mexico and Canada were hit with a distinct set of tariffs.

As the U.S. trade relationship evolves, stakeholders must navigate the complex landscape of tariffs, exclusions, and targeted agreements that define the new policy.

Trump plans to hike tariffs on dozens of trading partners by August 1

If agreements with Washington are not struck, President Donald Trump will impose higher duties on several countries starting August 1. The new tariffs aim to address trade disputes, national‑security concerns and allegations of unfair market practices.

Canada and Mexico face steeper duty‑rates

Trump announced that goods from Canada will be subject to a 35 % duty, while Mexican products will see a 30 % level. Under the USMCA partnership, most merchandise that enters the United States remains exempt from the new rates. Canadian energy resources and potash, used as fertilizer, will continue to enjoy lower tariffs.

China emerges as a major target

The United States has gunned its focus on China amid an escalating tariffs war this year before a temporary pause. Both economies had imposed triple‑digit duties on each other, a level described as a trade embargo. Following high‑level talks, Washington lowered its levies on Chinese goods to 30 % and Beijing slashed its own to 10 %. This pause will expire August 12, after which officials will meet for further talks on Monday and Tuesday in Stockholm.

The new US tariff is higher because it includes a 20 % duty over China’s alleged role in the global fentanyl trade. In addition, Trump ordered the closure of a duty‑free exemption for low‑value parcels from the country, raising the cost of importing items such as clothing and small electronics.

Automotive and metal imports hit hard tariffs

Trump has targeted specific business sectors on conventional national‑security grounds. A 25 % levy on steel and aluminum imports was later doubled to 50 %. The president unveiled plans for a 50 % tariff on copper imports starting August 1 and rolled out a 25 % tariff on imported autos. Under the USMCA, autos entering the United States can qualify for a lower rate. The auto tariffs impact vehicle parts, but new rules ensure automakers paying vehicle tariffs will not also be charged for certain other duties.

Trump is conducting ongoing investigations into imports of lumber, semiconductors, pharmaceuticals and critical minerals that could trigger further duties.

Legal challenges arise against these tariffs

Several lawsuits have been filed challenging the new tariffs on the grounds that the president invoked emergency powers. The US Court of International Trade ruled in May that the president had overstepped his authority, but a federal appeals court has allowed the duties to remain while it considers the case. If these tariffs are ultimately ruled illegal, companies could potentially seek reimbursements.