US President Donald Trump’s reciprocal tariffs has introduced significant complexities into global trade dynamics, prompting varied responses from the country’s trading partners and raising concerns about economic implications. Trump had, on February 13, 2025, announced that the US would implement reciprocal tariffs starting April 2, 2025. This policy, he had added, aims to match the tariffs that other countries impose on US exports, thereby addressing perceived trade imbalances.
The announcement has significantly impacted global trade dynamics, leading to economic uncertainties and shifts in international relations. Earlier in March, the World Trade Organization (WTO) had said that increased trade policy uncertainty and prospects of new tariffs could weigh on global trade in the medium term, even though for the first few months of 2025, it is expected to be steady. However, it hasn’t made any revision of its forecast of growth in global merchandise trade volume for 2025, from 3 per cent seen last October.
Trump’s trade war is forcing America’s closest allies to choose between fighting back or acquiescing. The European Union and Canada have led the charge against the tariffs.
Here is a list of US trade tariff and retaliation measures announced so far:
China
The US imposed a 25 per cent tariff on capital equipment and intermediate inputs and the 7.5 per cent tariff on consumer goods on China as part of its trade measures in February and March 2025. These tariffs add to the ongoing trade restrictions, with an additional 10 per cent tariff on top of 10 per cent tariff in February and tariffs already implemented in 2018 and 2019, many of which are as high as 25 per cent.
In retaliation, China imposed a 15 per cent tariff on US LNG imports, coal, and coke, along with a 10 per cent tariff on crude oil and agricultural equipment. Additionally, China has introduced export controls on four rare earth metals, which are critical to various high-tech and defense industries.
Mexico
The 25 per cent tariffs on all goods were initially planned by the US but have been postponed for USMCA (United States-Mexico-Canada Agreement) goods, indicating that Mexico is temporarily exempt from these higher duties. However, starting April 2025, an 11 per cent tariff on all goods imported from Mexico will be enforced.
In retaliation, Mexico postponed the implementation of a 25 per cent tariff on US steel and aluminum until April 2.
Canada
The US had announced 25 per cent tariffs on all goods for Canada, but a lower 10 per cent tariff was applied specifically to Canadian energy and energy resources. However, these tariffs have been postponed for USMCA (United States-Mexico-Canada Agreement) goods, meaning that some Canadian exports may be temporarily exempt.
In retaliation, Canada has announced imposing tariffs on $21 billion worth of American goods, specifically targeting the US-made steel, aluminum, and various consumer products.
European Union
The United States has imposed a 25 per cent tariff on steel and aluminum imports from EU nations starting in April 2025.
In response, the EU, on March 12, 2025, announced tariffs on EUR 26 billion ($28.3 billion) worth of US goods, targeting American steel and aluminum products, textiles, agricultural products, and home appliances.