Hello and welcome to the details of Trump’s return sparks trade chaos: A closer look at his tariffs and threats and now with the details
Nevin Al Sukari - Sana'a - A cornerstone of Donald Trump’s vision includes a phased rollout of universal tariffs on all US imports.— Pic by Reuters
WASHINGTON, Feb 10 — Since returning to office last month, US President Donald Trump has initiated numerous tariffs and made even more frequent threats to impose levies on imported goods.
They range from broad ones — a universal tariff on foreign-imported goods — to ones aimed at specific sectors, regions, or countries in an effort to get others to meet his policy demands.
Trump’s threats have changed over time, ranging from small levies to ones exceeding 200 per cent, leaving other nations and businesses unclear of what is to come next.
Here is a roundup of Trump’s trade-related steps and threats.
Broad Tariffs
A cornerstone of Trump’s vision includes a phased rollout of universal tariffs on all US imports. Treasury Secretary Scott Bessent has been pushing for a modest 2.5 per cent tariff rate that would climb each month, according to a Financial Times report.
However, Trump has suggested tariffs could be even higher. Whereas tariffs were once the mainstay of US tax revenues, in recent decades they have dwindled to a fraction of US tax receipts.
Economists say Trump’s policies will be inflationary as importing businesses, which pay tariffs, will likely pass added costs to consumers.
On Friday, Trump said he would impose “reciprocal” tariffs, seemingly targeting countries that have levies on US goods. He has not specified what tariffs he would levy, however.
Global trading partners could impose counter-tariffs, targeting US agricultural, energy, and machinery exports. This could escalate into a worldwide trade war, creating uncertainty for businesses and investors.
Specific countries
Trump’s tariff proposals target several key trade partners.
Mexico and Canada
The two countries were the largest trade partners of the US in 2024 through November, with Mexico ranked first. Trump announced he was imposing 25 per cent duties on imports from Mexico and Canada to go into effect Feb 4 as retaliation for migration and fentanyl trafficking.
Just before those tariffs were imposed, however, Trump called off the levies, postponing them until March 1 pending negotiations with those two nations. On Sunday, Trump said neither country had done enough to halt the flow of migrants or drugs.
Canada primarily exports crude oil and other energy goods along with cars and car parts as part of the North American auto manufacturing chain. Mexico exports various goods to the US in the industrial and auto sectors.
China
Trump imposed a 10 per cent tariff against China, keeping his promise to put levies on those imports. China announced it would retaliate with levies on some US goods beginning on Monday. In Trump’s first term, the two countries engaged in a long trade war that hurt both economies.
Europe:
Trump said the EU and other countries have troubling trade surpluses with the United States. He has said the countries’ products will either be subject to tariffs or he will demand they buy more oil and gas from the US, even though US gas export capacity is near its limits.
Russia:
Trump has threatened to hit Russia “and other participating countries” with taxes, tariffs and sanctions if a deal to end the war in Ukraine is not struck soon.
India and Brics nations
During his campaign Trump called India a “very big abuser” on trade and vowed to use tariffs to correct trade imbalances. He has also threatened the broader BRICS group of nations with tariffs if they did not commit to not create a new currency.
Colombia
Trump said he would put 25 per cent tariffs on Colombian goods after the country refused to take in flights carrying migrants to be deported from the US; the two sides worked out an agreement.
Products
Metals
Trump on Sunday said he was going to put tariffs on imports of all steel and aluminum, used by automakers, aerospace companies, and in construction and infrastructure.
The US is the world’s largest aluminum importer, according to World Bank data. It has had a trade deficit in steel for a decade, according to the International Trade Administration. It is the second largest steel importer worldwide, with more than half of those volumes coming from Canada, Mexico and Brazil.
Semiconductors
Trump has said he wants to impose tariffs on imported computer chips, pointing to Taiwan, where Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, makes semiconductors for Nvidia, Apple and other US clients. TSMC generated 70 per cent of its revenue in 2024 from customers based in North America.
Pharmaceuticals
Trump has suggested tariffs on pharmaceutical supplies including medications, which would be a change. Over the last few decades, pharmaceuticals have generally been exempt from tariffs.
Automobiles
Trump has floated the idea of 100 per cent or greater tariffs on other vehicles, including potentially EVs. The automobile industry accounted for imports of more than $202 billion from Canada and Mexico combined in 2024.
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