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Donald Trump has imposed tariffs upon U.S. trade partners and promised many more. A number of new tariffs are due to go into effect on April 2, which the president refers to as "Liberation Day."
Tariffs are a cornerstone in Trump’s economic strategy. They have parameters and deadlines that change constantly. Some tariffs were used as bargaining tools with other nations, while others were designed to bring jobs and manufacturing back to the U.S. The president also plans to use them to offset some government spending.
Trump’s inconsistent tariff policy has caused uncertainty in the economy. Businesses and consumers are concerned that inflation could rise and the economy could be heading towards a recession. This uncertainty has weighed heavily on investor sentiment and sent stocks sharply down in recent months.
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Do you want to know more about all the implications of these tariffs? Here are our most recent headlines on how trade policies affect the economy and financial market.
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Investopedia has worked to gather all of Trump's tariff proposals. Included are only those with documentation and some level detail (either a proposed rate or a date of implementation). This page will be regularly updated as parameters change and more information becomes accessible.
Tariffs on countries
| Country | Date Enacted | Rates | Latest News | Documentation |
|---|---|---|---|---|
| Mexico | Enacted March 4 | 25% | Trump Delays Mexico, Canada Tariffs | Executive Order |
| Canada | Enacted March 4 | 25% | Trump Delays Mexico, Canada Tariffs | Executive Order |
| EU | Uncertain | Alcohol products at a 200% discount | Trump Threatens to 200% Tariff EU Alcohol | Truth Social Post |
| China | Enacted February 4, and increased a month after | 20% | Which sectors are most likely to be affected by Trump’s tariffs and why? | Executive Order |
| Venezuela | Expected April 2 | 25% | Executive Order |
A Closer View
Mexico: Donald Trump announced his trade policies for Mexico even before he took office. Since then, our policy towards our southern neighbors has changed several times.
In his latest move, Trump taxed every item from Mexico at a flat rate of 25% but then made exceptions for USMCA products. These exceptions cover the majority of what would be subject to taxation, but Trump has stated that these exemptions are temporary and will be lifted by April 2.
Canada: Canada has mostly shared Mexico’s pain under Trump’s trade policy, but has faced additional tariffs at times as Ottawa has retaliated. The president stated that the 25% tax rate on non-USMCA products from Canada could change as of April 2. Later, energy resources and potash was included in tariffs against our northern neighbors. On April 2, additional tariffs, including those on lumber and dairy products, may be implemented.
Venezuela: While the Venezuelan tax is aimed at the South American country, it will actually be implemented for others. The 25% tariff will apply to goods imported into the U.S. by countries that buy Venezuelan crude oil. This could include China and the Dominican Republic. It could also include India, Malaysia, Russia. Singapore, Spain, Vietnam, and the Philippines.
The tariffs will affect the Venezuelan economy, since oil accounts for over 80% of Venezuelan exports. It also represents more than 17% its gross domestic product. Trump has targeted Venezuela as he believes it poses a “unusual and extraordinary threat” to the US national security and foreign policies.
Tariffs on Specific Items, Sectors, or Industries
| Item | Date Enacted | Rates | Latest News | Documentation |
|---|---|---|---|---|
| Steel | Enacted March 12 | 25% | Metal Tariffs Retaliated by Other Countries | Proclamation |
| Reciprocal | Expected April 2 | Would match the rate imposed by the U.S. on exports | Trump Backs Off Threat of Reciprocal Tariff | Truth Social Post |
| Automobiles, parts and accessories | Expected on April 3 | 25% | Trump Announces Auto Tariffs | Proclamation |
| Pharmaceuticals | Unclear | 25% or higher | Trump suggests 25% tariffs for Pharma | C-SPAN |
| Aluminum | Enacted March 12 | 25% | Aluminum Tariffs Could Increase Prices | Proclamation |
| Copper | Uncertain | 25%. | Copper Futures Hit Record-High Amid Tariffs | Executive Order |
| Lumber | Uncertain | 25% | Tariffs can add up to $9,200 per house | Executive Order |
A Closer View
Reciprocal: If it were to go through as planned, reciprocal tariffs would be the most widespread trade policy thus far. This proposal would have the U.S. mirror the tariffs that are imposed by the U.S. on the exports of goods from the other country. For example, if goods from the U.S. had a 5% tax rate when sent to the U.K. they would have a 5% tax rate upon their arrival in the U.S.
Trump has already walked away from some of his promises, saying he will be lenient towards “a lot of nations.” It is still unclear if reciprocal taxes are a flat rate or applied item-by–item to a country. These tariffs are scheduled to take effect on April 2. More information may become available then.
Automobiles: In his effort to bring automaking back to the U.S. Trump is building a barrier around U.S. manufacturing. The import tax will be permanent and include engines, transmissions and electrical components. Analysts said that parts that were exempted under other tariff proposals included in the USMCA are now exempted, but that this reprieve could only be temporary.
It is not clear whether this manufacturing scheme will succeed. Labor in the U.S. is still more expensive than that of other nations. Analysts said it could still be more cost-effective for many companies to pay tariffs than to move their vehicle manufacturing operations.
Pharmaceuticals: Trump has made comments about pharmaceutical tariffs at a number press conferences, but hasn’t outlined any specific plans. Trump once said that import taxes on medicines could be as high as 25% and could increase over the course of a year in order to give companies a ramp-up. Voters are particularly concerned about the cost of prescription drugs. However, as with other tariffs, it could result in a price increase.
