While most try to negotiate, China retaliate against it’s 104% US Tariff
As of today, April 11, 2025, the United States under the second Trump administration has implemented a complex web of international tariffs. These measures and the responses from various countries are still unfolding, but here’s a summary of the key actions and reactions:
United States Tariffs:
* Universal Baseline Tariff: A 10% tariff has been imposed on imports from nearly all countries, effective April 5, 2025.
* “Reciprocal” Tariffs: Additional tariffs, ranging from 11% to 50%, were announced on April 2, 2025, targeting countries with which the U.S. has a significant trade deficit in goods. The implementation of these steeper “reciprocal” tariffs has been paused for 90 days for most countries, effective April 9, 2025.
* China-Specific Tariffs: Tariffs on Chinese goods have been significantly increased. The baseline tariff on all Chinese imports was raised to 20% in March 2025 (in two 10% increments in February and March). Following further increases in April, the total average U.S. tariff on Chinese imports reached 145% by April 9, 2025. However, this was then adjusted to 125% on April 9th with a 90-day pause on further increases.
* Steel and Aluminum Tariffs: A 25% tariff on all steel and aluminum imports was imposed on March 12, 2025, eliminating previous exemptions and raising the aluminum tariff from an earlier 10%. This has been expanded to include aluminum cans and canned beer. To qualify for duty-free status, steel must be “melted and poured,” and aluminum “smelted and cast” in the U.S.
* Automobile Tariffs: A 25% tariff on all automobiles was implemented on April 3, 2025, with an exemption for U.S. content.
* Tariffs on Canada and Mexico: Initially, tariffs of 25% on most imports from Mexico and Canada (and 10% on Canadian energy) were announced, effective March 4, 2025. However, tariffs on goods compliant with the United States-Mexico-Canada Agreement (USMCA) have been delayed indefinitely.
Responses from Other Countries:
* China:
* Has retaliated with its own tariffs on U.S. goods, increasing them to 84% by April 9th, and then to 125% by April 10th in response to the U.S. increasing tariffs to 145%. However, following the US pause, China’s tariffs are now at 84%.
* Has strongly condemned the U.S. actions as “economic bullying” and vowed to “fight to the end.”
* China has stated it will “ignore” further tariff increases from the U.S.
* Canada:
* Implemented retaliatory tariffs of 25% on CAN155 billion (US107 billion) worth of U.S. goods, with a phased-in approach.
* Specifically, 25% tariffs on non-USMCA compliant vehicles and non-Canadian/Mexican content in USMCA-compliant vehicles took effect on April 9, 2025.
* Canadian leaders have called the U.S. tariffs unjustified and a violation of the USMCA.
* Mexico:
* President Claudia Sheinbaum announced that Mexico would enact both tariff and non-tariff retaliation against the U.S.
* While initial retaliation was delayed, it is expected to materialize.
* European Union (EU):
* The EU has described the U.S. tariffs as unjustified and has pursued a “staged approach” involving both targeted retaliation and openness to negotiation.
* EU member states have agreed to retaliatory tariffs on the U.S. worth €22 billion in response to the steel and aluminum tariffs. Some of these tariffs will come into effect on April 15th, May 15th, and later in the fall of 2025.
* The EU has also indicated it will allow the suspension of existing countermeasures from the first Trump presidency to lapse and will impose new retaliatory tariffs on roughly €26 billion of U.S. goods.
* India and Israel: These countries have reportedly entered into negotiations with the Trump administration to seek a deal and potentially avoid the higher tariffs.
* International Concerns: The widespread imposition of tariffs has generated significant concern globally about the potential for a global trade war and its negative impacts on economic growth, prices, and supply chains. There have been calls for upholding the “global rules-based order.”
It’s important to note that this is a rapidly evolving situation, and further announcements and responses from the U.S. and its trading partners are likely. The 90-day pause on the “reciprocal” tariffs for most countries suggests a potential window for negotiations or further adjustments to the U.S. trade policy.
