We have been reporting on regular basis the announcements made by the Trump administration regarding new tariffs, and this is a summary of those introduced in February...
1. Tariffs on Canada and Mexico
On February 1, 2025, President Trump signed executive orders imposing a 25% tariff on all imports from Canada and Mexico, with a 10% tariff specifically on Canadian energy resources, including oil, natural gas, and electricity. These tariffs were set to take effect on February 4, 2025. However, on February 3, after Canada and Mexico made their position clear, the Trump administration announced a 30-day suspension of these tariffs as Canada and Mexico agreed to enhance efforts to curb illegal immigration and drug trafficking into the United States. The suspension expires on the 4th March and tariff will be imposed unless significant progress is demonstrated.
2. Tariffs on China
The same executive orders from February 1 imposed a 10% tariff on all imports from China, effective February 4, 2025. This action aimed to address ongoing trade imbalances and concerns over China's trade practices.
3. Restoration of Section 232 Tariffs
On February 11, 2025, President Trump signed proclamations to restore a 25% tariff on steel and elevate the tariff on aluminum to 25%, closing existing loopholes and exemptions. This move intends to protect America's critical steel and aluminum industries from unfair trade practices and global excess capacity.
What is coming next?
25% Tariffs on imported automobiles are set to be also implemented although exact dates are yet to be announced.
Early in January, President Trump announced plans to introduced tariffs as well on imports of computer chips, semiconductors and pharmaceuticals, which are seen as critical to national security and technological leadership, and aimed to encourage big manufacturers to bring production to the US.
Last week (19th Feb), it was also announced fresh new tariffs to be applied next month or sooner on lumber and forest products, and initial thoughts are these may be about 25%.
Whilst the UK has not been targeted by the initial tariffs, the Prime Minister Keir Starmer is due to visit the white house to engage in discussions to preserve the strong trade ties between the two nations. On the other hand, the EU has opposed to the US Tariffs and has warned of potential retaliatory measure. EU's position argues how these tariffs can escalate to a trade war which will impact negatively global markets. Many experts warns these tariffs will end up impacting primarily the poorest and consumers both in the US and across the world.
Sources: White House, Reuters
Need help assessing your US Strategy?
Get in touch by emailing us at international@gmchamber.co.uk
Comments