US President Donald Trump has opened up a comprehensive trade war that now rocks the global economy. Trump, since becoming President in January, has been levying an increasingly higher sequence of tariffs against allies and competitors alike.
These tariffs, sometimes implemented with little notice, have surprised markets, confused supply chains, and inflamed diplomatic tensions. The international trading system now holds record uncertainty, with financial losses, legal disputes, and economic turmoil piling up daily.
Early Tariff Waves Rock Allies and China
Trump started his trade attack on February 1, imposing 25% on nearly all imports from Mexico and Canada, and 10% on Chinese imports. He tied the tariffs to halting fentanyl flows and illegal immigration. Two days later, Trump suspended tariffs on Mexico and Canada for 30 days, after forcing concessions on border security. But he kept China out of the arrangement.
He deferred tariffs on Chinese small packages on February 7, waiting for Commerce Department systems. On February 10, he imposed higher steel and aluminum duties at a flat 25%, eliminating all exemptions.
March Escalation and Industry Pressure
By March 3, Trump had restored 25% tariffs on Canada and Mexico and doubled duties on Chinese fentanyl imports to 20%. Two days later, he settled on postponing vehicle tariffs from Canada and Mexico following lobbying by automakers. He exempted products under a North American agreement on March 6 for a month.
Trump ratcheted up once more on March 26, slapping 25% tariffs on imported trucks and cars.
Global Blowback and Market Turmoil
On April 2, Trump declared 10% tariffs on all imports across the globe, affecting major trading partners even worse. It created market mayhem, wiping out trillions of value. On April 9, Trump suspended most tariffs on countries for 90 days but retained the 10% blanket tariff.
He later escalated Chinese tariffs to 125%, taking the overall to 145% on Chinese products with fentanyl-related penalties.
Tech Exemptions, New Targets
Trump exempted electronics, computers, and smartphones on April 13. On April 22, Trump initiated national security investigations into pharmaceuticals and semiconductors under the 1962 Trade Act. These may initiate new tariffs.
Trump’s culture war began on May 4 with a 100% foreign movie tariff. On May 9, he and UK PM Keir Starmer reached a small compromise that left 10% tariffs in place but reduced some auto and agriculture tariffs.
On May 12, the US and China committed to lowering tariffs by 90 days. American duties on China fell from 145% to 30%, and China reduced its own from 125% to 10%. The next day, the US cut de minimis tariffs on low-value Chinese imports to 54%.
Europe, Apple, and the Courts
Trump vowed a 50% tariff on EU products on May 23, threatening Apple with a 25% duty if it went ahead with offshore production. But Trump postponed tariffs on EU until July 9 on May 25 to enable further negotiations.
Legal battles then ensued. On May 28, a US trade court halted Trump’s wide-ranging tariffs, declaring he had overstepped his authority. The administration promised to appeal. On May 29, a federal court restored the tariffs on a temporary basis pending review of the appeal.
Global Uncertainty, No End in Sight
Trump’s trade war has unleashed legal fights, undermined diplomatic relationships, and shaken markets. With new tariffs, stalled negotiations, and court decisions on the horizon, the global economy is still on tenterhooks.
As June starts, businesses, consumers, and governments alike feel increasing pressure from a rogue and volatile US trade policy.