Since beginning his second term on January 20, 2025, President Trump has implemented a range of tariff policies. While we provided an update last week on the administration’s latest reciprocal tariff strategy, those measures—excluding those targeting China—were postponed for 90 days over the past weekend.

Key Takeaways on U.S. Tariff Policy

Trump Administration Tariff Policy Timeline

• 2025/1/20: President Donald Trump’s second inauguration. He pledges to protect U.S. industries and jobs through tariffs, and begins trade policy reform.
• 2025/2/1: Announces a 25% tariff on imports from Canada and Mexico, and a baseline 10% tariff on Chinese goods. Effective from February 4.
• 2025/2/3: Initiates trade talks with Canada and Mexico, delaying the tariffs on both countries by one month.
• 2025/3/4: Raises tariffs on Chinese imports to 20%. The 25% tariffs on Canada and Mexico take effect, but USMCA-compliant goods are exempt until April 2.
• 2025/3/12: Imposes a 25% tariff on steel and aluminum products.
• 2025/4/2: Implements a 10% tariff across all imported goods and announces a "reciprocal" tariff framework to take effect on April 6. Also imposes a 25% tariff on all imported vehicles.
• 2025/4/4: China announces that starting April 10, it will raise tariffs on all U.S. goods by an additional 34%, and its customs authority enacts export controls on seven types of medium and heavy rare earths (e.g., samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium).
• 2025/4/9: U.S. pauses the "reciprocal" tariffs above 10% for all countries except China for 90 days (until July 9), while slapping another 50% increase on Chinese goods, bringing the effective rate to 145%. Canada imposes a 25% tariff on non-USMCA-compliant American vehicles.
• 2025/4/12: China raises tariffs on U.S. goods from 84% to 125%. Officials state that given current levels, U.S. products are “no longer viable” in the Chinese market and that any further U.S. tariff hikes will be ignored.
• 2025/4/14: The U.S. Department of Commerce launches a Section 232 investigation into pharmaceuticals, raw materials, derivatives, semiconductors, and related equipment.
• 2025/4/16: The White House announces that cumulative effective tariffs on certain Chinese imports have reached 245%.

Glossary USMCA-Compliant Goods: To qualify as USMCA-compliant, a product must meet one of the following:
1. Entirely produced in the U.S., Mexico, or Canada using raw materials from these three countries.
2. Processed or substantially transformed in these three countries, even if the materials originate elsewhere.
3. Have at least 50% of its value derived from within North America.

Section 232 Investigation: Under Section 232 of the Trade Expansion Act of 1962, this investigation determines whether specific imports threaten U.S. national security. Initiated by the Commerce Secretary (either independently or upon request), the review must be completed within 270 days, with a report submitted to the President, who then has 90 days to act and report to Congress.

Tariff Policy Overview

U.S.-China Trade Standoff Persists; Other Countries Enter Talks

Despite the shifting nature of Trump’s tariff policy, a clearer structure is emerging. The policy can broadly be segmented by region:

North American Trade Partners

Canada and Mexico, as key neighboring trade partners, were among the first to face tariffs and enter negotiations. Adjustments to tariffs on selected goods are expected to serve both economic and political purposes.

China

China is one of the few countries that responded with significant counter-tariffs. Currently, there is no set timeline for trade negotiations, indicating the strained U.S.-China trade relationship. With U.S. tariffs on Chinese goods reaching 145% as of April 9, any additional increases may yield diminishing returns and serve more as political messaging than economic policy. Without negotiations, the situation may escalate into a long-term trade cold war once short-term shipments taper off.

Other Countries

Aside from China, over 70 countries have opened trade dialogues with the U.S., according to the Trump administration. Although no public details have been released, Trump’s April 2 reciprocal tariff announcement is seen as a cap. Actual tariff rates are expected to land between the base 10% and the negotiated reciprocal rates.

Summary Table: Tariff Status by Country (as of April 16, 2025) | Country | Status | Tariff Policy | Notes | | --- | --- | --- | --- | | Mexico & Canada | Active since 3/4 | 25% (USMCA-compliant goods exempt) | First to enter negotiations | | China | Updated 4/9 | 145% cumulative, some items up to 245% | No set negotiation timeline | | Other Countries | In negotiation | 10% base + reciprocal (deferred to 7/9) | |

Selective Tariffs on Key Products

In addition to broad tariff increases, Trump has targeted certain goods he considers strategically important. For instance, in March and April, the U.S. imposed 25% tariffs on steel and vehicles. Other items like pharmaceuticals and semiconductors are under Section 232 investigation, with potential tariffs exceeding 25%. Other commodities such as energy, lumber, and copper have been previously flagged for future tariffs.

Summary Table: Key Products Affected (as of April 16, 2025) | Product | Status | Tariff Policy | | --- | --- | --- | | Aluminum | Active since 3/12 | 25% | | Automobiles | Active since 4/3 | 25% | | Auto Parts | Effective 5/3 | 25% | | Copper | Previously flagged | — | | Semiconductors & Derivatives | Previously flagged | Over 25% (planned) | | Oil & Natural Gas | Previously flagged | — | | Steel | Active since 3/12 | 25% | | Pharmaceuticals | Previously flagged | Over 25% (planned) |

Stay tuned with us — we’ll continue to monitor developments, report updates, and break down the ongoing impacts for you!