What’s Happening With Trump Tariffs? New Rates and Trade Talks

You've probably noticed that President Donald Trump is making tariffs a core part of his economic strategy. He argues that these taxes on imported goods and services are crucial for reducing the United States' trade deficit and enhancing U.S. manufacturing.

Since April 2, Trump has implemented sweeping tariffs on nearly all products from almost all countries. However, most were paused for 90 days on April 8, except for tariffs involving China.

Many economists argue that Trump’s tariff policies will harm the U.S. economy by increasing costs for businesses and consumers, exacerbating inflation, and potentially slowing economic growth.

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In a recent CBS interview, investor and philanthropist Warren Buffett described tariffs as "an act of war, to some degree."

Trump's former Vice President, Mike Pence, posted on X (formerly Twitter), calling the tariffs "the largest peacetime tax hike in U.S. history."

It can be a lot to keep track of. So, here is more information about the various Trump tariffs, starting with the latest levies and news, to help keep you up to date.

Overview

When do Trump's tariffs start?

In recent months, Trump has threatened, implemented, or paused broad tariffs on various goods, including steel, aluminum, cars, and more.

Initially, the measures targeted countries like China and trading partner allies, including Canada and Mexico. But Trump's most recent tariffs could eventually affect almost all countries.

• As Kiplinger has reported, Trump has also said he’d like to eliminate income taxes in favor of tariffs and establish an ERS (External Revenue Service) to collect tariff revenues.
• With new tariffs targeting automobiles, baseline tariffs on most countries, and higher "reciprocal" rates (11–50%) for targeted countries (including the EU) currently paused, trade tensions remain heightened.

Additionally, the inconsistent and historic nature of these tariff decisions has unsettled markets and caused confusion.

For example, on April 3, the U.S. stock market experienced its worst single-day decline since the pandemic during a sell-off following President Trump's tariff announcement.

Which tariffs were paused?

On April 9, after suggesting the President wouldn't back down on tariffs, the Trump administration temporarily suspended most new import duties for 90 days while increasing tariffs on Chinese goods. (The 25% tariffs on some Canadian and Mexican goods, plus automobiles and imported steel and aluminum, are still in place.)

The White House framed the move as part of strategic negotiations with dozens of nations seeking compromises on trade restrictions, energy agreements, and currency practices.

However, many believe the shift was in response to financial market instability that contributed to recent bond yield surges and economic uncertainty.

Trump tariffs smartphones temporary exemption

The Trump administration is temporarily exempting smartphones, laptops, and other electronics from its sweeping 145% tariffs on Chinese imports.

The decision, announced on April 12 by U.S. Customs and Border Protection (CBP), seems to spare critical tech products like semiconductors and flat-panel displays from high levies, which combine a baseline 20% tariff with a newly imposed 145% “reciprocal” tariff.

In a developing situation, the exemption comes amid an intensifying trade conflict. China had just raised its tariffs on U.S. goods to 125%.

White House announces 145% tariffs on China

The Trump administration revealed in early April that China faces a minimum 145% tariff on all imports, 20% higher than the previously announced 125%. Trump officials told reporters that the new duties are on top of existing tariffs.

Just the day before, the White House initially set the tariffs at 104% on Chinese imports to take effect April 9, then seemed to increase them to 125% while putting a 90-day pause in place for new tariffs on other countries.

Since then, China has raised tariffs on U.S. goods to 125%.

Republicans push back against Trump tariffs

Meanwhile, some GOP lawmakers are pushing back against Trump's tariffs.

Four Republican senators joined Democratic Sen. Tim Kaine of Virginia's resolution to block Trump's tariffs on Canadian imports. In a 51-48 vote, the senators rejected the notion of a national emergency that Trump used to justify the tariffs. However, the resolution faces headwinds in the U.S. House of Representatives.

A bill proposed by Sens. Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.) would limit presidential authority on tariffs by requiring congressional approval within two months of implementation. The bill, designed to address concerns over unilateral trade actions, would also require detailed reports on the consequences of tariffs to strengthen legislative oversight of trade policy.

In a recent Fox Business interview, Sen. Ted Cruz (R-Texas) said, "I'm not a fan of tariffs," adding, "If the result is our trading partners jack up their tariffs and we have high tariffs everywhere, I think that is a bad outcome for America."

In an April interview, Sen. Rand Paul of Kentucky, said, "I believe that economically, it's a misconception to think that tariffs will benefit the nation."

Latest Developments

Tariff News

Here’s where things stand so far with Trump’s tariffs. (More detailed information on each is provided below.)

• April 12, 2025: US Customs and Border Protection notice temporarily exempts cell phones and some other electronics from the 145% tariffs
• April 10, 2025: The White House says the tariff rate for China is actually 145%.
• April 9, 2025: Higher "reciprocal" tariff rates for many countries were set to take effect, according to the White House. But the Trump administration says this now means 125% on Chinese imports and a 90-day pause for most other countries.
• April 7, 2025: Trump threatens 50% tariffs on China
• April 5, 2025: U.S. 10% baseline tariffs go into effect against many countries.
• April 2, 2025: Trump's Tariff' Liberation Day": Trump announces sweeping tariffs on almost all countries at half the rate the administration claims they charge the U.S. Some Senate Republicans join Democrats in a vote designed to invalidate Trump's tariffs on Canada.
• March 26, 2025: President Trump announces a 25% tariff on almost all imported cars effective as of April 3, 2025, and on key auto parts planned for May 3.
• March 12, 2025: The U.S. announces Increased tariffs on steel and aluminum to 25% globally.
• March 4, 2025: Trump increased tariffs on Chinese imports to 20%. New reciprocal tariffs have since been imposed on China.

Retaliatory measures by trade partners

Global trading partners have responded strongly to Trump's tariff policies. Though specific details on retaliation to the April 2 announcements are developing.

• Canada & Mexico: Both countries are reportedly negotiating exemptions under the USMCA framework. Canada imposed a 25% tariff on U.S.-made automobiles, with some exceptions. Mexico is facing a 25% tariff on most goods.
• European Union: The EU is reportedly preparing countermeasures to U.S. tariffs, including tariffs on US consumer goods, steel, and agricultural products.
• China: Beijing criticized the new measures and announced a 125% retaliatory tariff on U.S. goods.

Trump tariff announcment: Global 'reciprocal tariffs'

In what he dubbed "Economic Independence Day," Donald Trump announced sweeping new reciprocal tariffs on almost all countries.

During an April 2 event in the White House Rose Garden, Trump held up a chart listing the countries, their tariff rates, and the proposed new U.S. tariff rate.

For example, the administration said China charges 67% so that the U.S. would impose a 34% tariff. The U.S. will have a minimum baseline tariff of 10% on almost all goods, the same rate that will apply to the UK. The EU will be subject to a 20% tariff.

The list included a 46% tariff on Vietnam, 24% on Japan, a 25% tariff on South Korea, and 31% on Switzerland.

Trump described these numbers as "kind reciprocal, not full reciprocal."

However, critics say that Trump's reciprocal tariff formula miscalculates by equating trade deficits with foreign tariff rates. The argument is that this ignores global supply chains, currency dynamics, and consumer costs, while inviting damaging retaliation.

Auto import tariffs

Trump announced a 25% tariff on all imported cars and auto parts. Trump says the tariffs will take effect April 3. (May 3 is when tariffs go into effect on key auto parts, e.g., engines, transmissions, and electrical systems.)

Vehicles and parts originating from Canada and Mexico that comply with the United States-Mexico-Canada Agreement (USMCA) will initially be exempt until a system is established to levy tariffs on non-U.S. components.

Meanwhile, Trump recently told NBC News he "couldn't care less" if foreign automakers raise prices due to the levies. Trump says Americans will simply buy cars made in the United States.

• The Tax Foundation and other organizations have analyzed the potential impact of various trade policies, including tariffs on imported goods.
• Those analyses suggest that tariffs on automobiles and auto parts would lead to higher consumer prices. However, the specific dollar amount would depend on the size and scope of the tariffs.

Additionally, Trump has recently hinted at upcoming tariffs targeting lumber, pharmaceuticals, and other sectors.

Pharmaceutical tariffs?

Trump has suggested he will soon announce tariffs on imported pharmaceuticals.

“We have to bring pharmaceuticals, drugs, and pharmaceuticals back into our country. We never want to have to rely on other countries for that,” Trump said to reporters on March 29, captured in an Associated Press video.

Trump has suggested such tariffs could be as high as 25%, and could impact pharmaceutical products from China, Europe, Canada, and Mexico. However, the exact percentage, timing, and scope remain unclear.

Tariff Status by Country

United States tariffs

• 10% minimum tariffs imposed on most countries (April 5 effective date). Higher reciprocal tariffs are paused on some
• 145% on Chinese imports effective April 9.
• 25% on imported cars (effective April 3, 2025) and key auto parts (May 3)
• 25% on steel and aluminum (effective March 12, 2025)
• 25% on most Canadian and Mexican goods (with USMCA exemptions until April 2, 2025)

As mentioned, President Trump wants to expand levies on imports from China, Canada, Mexico, and the European Union, covering goods ranging from steel and aluminum to cars and agricultural products.

Canada tariffs on US

• 25% tariff on non-USMCA-compliant U.S.-made vehicles (announced April 3)
• 25% on CA$30 billion of U.S. goods (March 4, 2025)
• An additional 25% on CA$29.8 billion of U.S. products (March 13, 2025)

Since Trump began his second term in January 2025, trade tensions between the U.S. and Canada have escalated significantly due to Trump's new tariff measures.

On April 3, Canada announced a 25% tariff on U.S.-made vehicles that don't comply with the USMCA trade agreement and the non-Canadian/Mexican content of compliant vehicles.

In early March, the Trump administration introduced a 25% tariff on most Canadian imports, with energy products facing a reduced rate of 10%.

New Canadian Prime Minister Mark Carney responded with retaliatory tariffs of 25% on $30 billion worth of U.S. goods. Those tariffs target key U.S. exports like orange juice, peanut butter, and motorcycles.

Canada has warned it could expand these tariffs to cover $155 billion in U.S. goods.

Note: On April 2, the U.S. Senate voted 51-48 in rejecting Trump's plan to impose 25% tariffs on Canada. The move is considered a rare rebuke of Trump and his policies since Sens. Collins, McConnell, Murkowski, and Paul joined Democrats in the vote.

Mexico tariffs

• 25% on most Mexican goods is said to go into effect March 4, 2025, with USMCA exemptions paused until April 2, 2025

On February 1, Trump signed executive orders imposing a 25% tariff on all imports from Mexico, including energy products, which were excluded from the reduced rates granted to Canada. Some tariffs took effect on March 4, despite earlier negotiations for a one-month delay.

Mexican President Claudia Sheinbaum strongly condemned the tariffs as unjustified and harmful.

In response, Mexico announced plans for retaliatory measures, including tariffs and non-tariff restrictions. While details remain unclear, Sheinbaum hinted at a comprehensive strategy targeting key U.S. exports and industries.

The U.S. justified the tariffs as efforts to address border security and reduce trade deficits, but Mexico has argued that they violate the USMCA.

Some economists warn that the actions could disrupt supply chains and increase consumer prices across North America.

China retaliatory tariffs on US

• 125% tariff on some U.S. goods announced
• 10-15% on U.S. meat and agricultural products (March 10, 2025)
• Suspension of U.S. lumber imports and revocation of soybean import licenses
• 15% on coal and liquefied natural gas, 10% on oil and agricultural machines (February 4, 2025)

On April 4, China announced a 34% retaliatory tariff on all U.S. goods to reportedly be effective April 10. They increased that to 84% in an April 9 announcement.

The initial 34% announcement followed Trump's imposition of a 34% tariff on goods from China, as announced on April 2, and reports from Chinese state media that China, Japan, and South Korea were planning a joint response to U.S. tariffs.

Previously, on February 4, 2025, the U.S. had imposed a 10% tariff on all Chinese imports under the International Emergency Economic Powers Act (IEEPA). That was doubled to 20% on March 4, following a Trump executive order aimed at addressing national security concerns.

In response, China announced retaliatory tariffs effective March 10, including a 15% duty on U.S. chicken, wheat, corn, and cotton, as well as a 10% duty on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products.

Additionally, China suspended export permits for certain U.S. soybean producers and restricted imports of dual-use technologies from American companies.

Beyond tariffs, China is adding U.S. firms to its "Unreliable Entity List."

EU tariffs

• Proposed tariffs on €4.5 billion of U.S. consumer goods and €18 billion of U.S. steel and agricultural products (expected mid-April 2025)

U.S.- European Union (EU) trade relations have been strained by Trump's escalating tariff disputes.

In an April 2 announcement, Trump said the U.S. will impose a 20% tariff on the EU. As mentioned, the Trump administration calls this tariff "reciprocal," claiming it addresses what he perceives as unfair trade practices. However, many experts have disputed the validity of the calculations involved.

Data show the EU typically imposes much lower average tariffs on U.S. goods — around 1% to 4.8%, depending on the source.

Previously, the EU planned a phased response to Trump's tariffs.

• Phase one would involve reinstating tariffs from 2018 and 2020, which had been suspended under President Biden.
• Phase two would introduce new tariffs on agricultural products, alcoholic beverages, textiles, and household items.
• Originally scheduled to begin on April 1, both phases were delayed to mid-April for further negotiations.

The EU’s countermeasures include tariffs as high as 50% on motorcycles, bourbon whiskey, poultry, and beef. European Commission President Ursula von der Leyen emphasized the bloc’s willingness to negotiate but warned of economic risks posed by tariffs on both sides.

Trump had threatened additional measures, including a 200% tariff on European alcoholic products.

Back on February 10, 2025, the Trump administration imposed a 25% tariff on steel and aluminum imports from the EU, along with additional duties on derivative products. In response, the European Union announced a two-phase retaliatory plan targeting approximately €26 billion ($28 billion) worth of U.S. exports.

Tariff Product Breakdown

Here is an overview of significant tariffs currently implemented under President Trump's administration:

Trump tariffs in 2025

Tariff Impact

Economic impacts of Trump tariff policies: Groceries, Cars, Inflation

The economic consequences of Trump’s tariffs are becoming increasingly evident:

Automotive Industry: Some analysts estimate that the new auto tariffs could add $3,000 to the cost of U.S.-manufactured vehicles and $6,000 to those made in Canada or Mexico without exemptions. Production output could drop by as much as 30%, equating to a reduction of approximately 20,000 vehicles per day.

Inflation Concerns: Economists warn that higher tariffs could exacerbate inflation as manufacturers pass increased costs onto consumers.

As reported by Kiplinger, tariffs function as taxes on imports, which raise prices for goods like electronics, clothing, and food, disproportionately affecting lower-income households and reducing purchasing power.

According to the Yale Budget Lab, these higher costs could lead to slower GDP growth, with estimates suggesting a 0.6% reduction in 2025 and long-term economic losses equivalent to $80–110 billion a year.

Employment: While some sectors, like steel manufacturing, have seen job growth, others that rely on imported components face layoffs and reduced production capacity.

Additionally, some businesses are reportedly scaling back hiring and investment plans due to uncertainty and increased operational expenses.

Trade War: Bottom Line

Tariffs: What's next?

Here are some things to watch as the trade wars continue.

On April 2, reciprocal tariffs targeting additional countries and sectors will likely be announced. These measures could expand the scope of existing trade conflicts.

• The Trump administration may use tariff threats as leverage in bilateral talks with trading partners like Canada and Mexico under the USMCA framework.
• Industries like pharmaceuticals and lumber could face tariffs.
• China, Japan, and South Korea are reportedly planning a joint response to Trump's tariffs.
• Due to President Trump's tariff policies, U.S. consumers will likely face higher prices on a wide range of goods.

Automobiles may become significantly more expensive, with new car prices rising by thousands of dollars and repair costs increasing due to tariffs on imported parts.

Furniture, electronics, household items from China, fresh produce from Mexico, and steel-based products are also expected to see price hikes as import duties take hold.

These tariffs (and retaliatory measures expected from key trading partners) are also projected to contribute to inflation, making everyday goods more costly for U.S. households. Stay tuned.

This article has been updated to reflect recent announcements regarding retaliatory measures.

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