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President Donald Trump’s tariffs are reshaping U.S. trade policy, altering long-standing free trade agreements with both allies and rivals. The following outlines the current status of trade relations with key partners:
With Canada and Mexico, a 25% tariff on imports from both neighboring countries took effect on Tuesday, March 4. Two days later, the U.S. announced a temporary pause on tariffs for goods and services compliant with the United States-Mexico-Canada Agreement (USMCA), delaying enforcement until April 2. However, on Friday, Trump indicated that reciprocal tariffs on Canadian lumber and dairy products could be introduced in the near future.
An initial 10% tariff on Chinese imports was implemented in early February, prompting retaliatory measures from China. On March 4, the U.S. increased these tariffs to 20%. In response, China imposed duties of up to 15% on U.S. agricultural products, including chicken and pork, set to take effect on Monday, March 10.
The administration has signaled the possibility of imposing tariffs on the European Union, potentially escalating the trade dispute across the Atlantic.
In February, Trump ordered a 25% tariff on all steel and aluminum imports from all countries, scheduled to take effect on March 12. This decision affects major U.S. trading partners while simultaneously supporting industries in states critical to Trump’s re-election campaign.
Additionally, a measure has been signed that could introduce reciprocal tariffs on U.S. trading partners as soon as April 2. This move aligns with a key campaign pledge and serves as a potential revenue-raising mechanism as Republicans prepare a tax and spending bill.
The ongoing trade measures may have significant economic consequences, including upward pressure on inflation. Rising prices could, in turn, influence Federal Reserve decisions on interest rates in the coming months and years.
