Last month, we reported on President Trump waging war with global trade via US tariffs and summarised the position at the time. However, a month is a long time in this story and things have developed significantly since.
Below is a summary of the current position:
25% Hikes On Canada and Mexico
Via Trump, the US announced 25% tariffs on its neighbours on February 4th and then almost immediately postponed them for 30 days. Earlier this week, Trump said that time had run out and confirmed the tariffs would be introduced from March 4th. Then three days later another 30-day postponement was announced, but this time only for certain products. Imports from Mexico that meet the terms of the USMCA Agreement (around 50% of imports from the country) are now temporarily exempt. Many automotive related products from Canada are now also exempt until the deadline, while some energy related products are set at 10% for now.
10%, then 20% Hikes On China
Trump introduced a 10% rise in duty rates from China starting February 4th, which has this week been doubled to 20% from March 4th. China has responded with its own tariff increases for US products on both occasions.
25% Hike on Steel and Aluminium
The US announced a new 25% tariff on steel and aluminium coming from all countries worldwide last month. This tariff comes into effect from March 12th.
Cancellation And Back Track On Ecommerce/Parcels
The ‘de minimis’ trade exemption is a rule that enables low value products (under $800) to be imported duty free. On 4th February, Trump signed an executive order to remove this rule, but after the US postal service could not handle the duty collections it was reinstated. The US government have ordered solutions be brought forward by 1st April, but it is unclear how long this would take to implement.
UK & European Union
Nothing official has been confirmed yet, although both parties will be subject to the steel tariffs mentioned above. Trump has repeatedly said that tariffs on the EU will be coming, but there may be the chance of a trade deal for the UK after a seemingly positive meeting between Trump and Starmer last week.
