Trump Tariffs

A history of the tariffs under Trump.

First Administration

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Second Administration

Immediate Program

Immediate actions taken by Trump upon election were largely targeted at China, Mexico, and Canada.

• Set tariffs of 20% on all imports from Chinese

• Set tariffs of 25% on many specific imports from Canada and Mexico

• Ordered the USPS end the de minimis exemption on parcels from China.

The measures set against Mexico and Canada quickly dissolved. First, temporary exceptions were made for specific manufacturers, especially automotive manufacturers, for imports from Canada and Mexico that are compliant with USMCA. Then the implementation was delayed entirely.

Similarly, the de minimis implementation quickly fell through. USPS and CBP were not prepared to process duties for this quantity of small parcels, so parcel services with China and Hong Kong were closed immediately. The fallout of this closure forced the administration to delay implementation entirely.

It is nonetheless important to note that the anticipation of a tariff war contributed to the downfall of the Trudeau government. Trudeau and Freeland disagreed on how to respond to the threat, and the latter's resignation triggered a loss of confidence. Trudeau resigned and announced a leadership contest, through which Carney emerged the winner. In the meantime, provincial governments retaliated within their powers. Ontario announced export fees on energy and threatened to ban energy exports entirely. Several provinces, such as British Columbia, effectively banned importation of American alcohol through their control of alcohol distribution.

There was also an attempt at a standardized tariff program. In March, tariffs were set at 25% on all car, steel, and aluminum imports. This led to several reciprocal tariffs being set against the U.S.:

• Von Der Leyen announced reciprocal tariffs on steel and aluminum coming into the EU. Of the 27 member states, only Hungary voted against these measures. Implementation however was delayed as diplomatic options were being exercised.

• The new Carney government announced retaliatory tariffs on American raw goods such as steel and aluminum.

Reciprocal Program

In April 2025, a 'standardized' tariff program was announced.

• 'Baseline' tariffs of 10% on all imports.

• Supplemental 'reciprocal' tariffs set on a country-by-country basis. These are in fact calculated according to BOP; they are not reciprocal.

  • Highest rate was set on Lesotho, at 50%.

  • Strangest rate is 10% on the joint (US-UK) military base in the British Indian Ocean Territory.

China became a nexus for the trade war. Jinping announced retaliatory tariffs on American agriculture and export controls on specific manufacturers. A sequence of ratcheting escalations landed on tariff rates of 145% (into U.S.) and 125% (into China). In an attempt to make the rates more punishing, Trump announced that the reciprocal tariffs for all other countries were frozen for 3 months.

Unexpectedly though, a bilateral agreement emerged in early May that set a framework for lowering tariff rates to 30% (into U.S.) and 10% (into China). This deal was briefly reneged at the end of May on the basis of rare earths export controls, but re-entered within a couple weeks.

Aside from China, these bilateral trade deals emerged within the freeze period:

• In May, Starmer announced a piecewise deal. The tariff rate applied to cars is lowered to 10% (into U.S.). Steel, aluminum, and specific aerospace components are exempted from tariffs entirely. The UK meanwhile will drop trade barriers against beef imports.

• Shortly after the 'reciprocal' tariffs were announced, Vietnam lowered tariffs unilaterally. A deal emerged in late June: rates were set at 20% (into U.S.) and 0% (into Vietnam). Additionally, goods that are only shipped through Vietnam into the U.S. face an additional 20% tariff upon arrival.

• Indonesia negotiated rates set at 19% (into U.S.) and 0% (into Indonesia). Significant purchase orders by the Indonesian government of U.S. energy, agricultural products, and military jets were also components of the negotiated deal.

• Japan negotiated lower rates on cars and automotive parts; while a rate of 25% applies to all other countries, imports from Japan will be taxes at 15%.

• Von Der Leyen announced a deal in late July. Due to the structure of the EU, there are opportunities for it to fall through, but the negotiated rates are 15% for most goods (into U.S.) (exception for steel, taxed at 50%) and 0% (into EU). Significant purchase orders of U.S. energy are also part of the deal.

In contrast, several countries were targeted with further actions in July. The context however reveals that these tariff actions are about geopolitics rather than trade.

• Tariffs of 25%, plus an unspecified penalty, were set on imports from India. The penalty is conditioned on whether India continues to purchase energy from Russia. It is notable that this rate is lower than the 27% announced in April.

• Tariffs of 50% were set on most imports from Brazil--products such as aerospace parts are exempted. This was announced alongside sanctions for the judge overseeing the prosecution of Bolsonaro.

The de minimis exemption was closed on parcels from China in April, will be closed for all countries effective August 29.

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