It was another roller-coaster week in US President Donald Trump‘s trade war as tariffs against China came into force while Mexico and Canada were given a temporary reprieve.
Here is what happened this week and what’s looming in the coming weeks:
– North American standoff –
Trump unveiled 25-percent tariffs on Canadian and Mexican goods on February 1, with a lower rate of 10 percent for Canadian oil.
But hours before they were due to take effect on February 4, Trump agreed to delay the move for a month.
Fast-forward to March 4: the tariffs come into force, hitting imports from Mexico such as avocado or tomatoes and Canadian goods such as lumber.
Three days later, Trump gave the two countries another one-month delay, this time on products covered under the United States-Mexico-Canada Agreement (USMCA) — a pact that the US leader signed into law during his first term in office in 2020.
More than 50 percent of Mexican goods and 38 percent of Canadian goods entered the United States under the USMCA last year, according to a White House official.
Trump had already given automakers a similar reprieve, which will last until April 2, following talks with Ford, General Motors and Jeep owner Stellantis.
In response to the pause, Canada delayed its own second wave of retaliatory tariffs on Can$125 billion ($87 billion) worth of US products until April 2.
Trump has justified the tariffs on the United States’ neighbours and vital trade partners, along with China, as a response to illegal immigration and the deadly drug fentanyl coming into his country.
– China –
Trump has not given China such breaks
Ten percent tariffs on goods from the country considered as the world’s factory came into effect on February 4 — and they were increased to 20 percent on March 4.
Beijing retaliated, saying it would impose 10- and 15-percent levies on a range of agricultural imports from the United States.
Those come into effect next week and will impact tens of billions of dollars in imports, from US soybeans and corn to chicken and beef.
Beijing had earlier responded to US trade measures with duties of 15 percent on coal and liquefied natural gas, and 10 percent on oil and other goods.
China has pushed back on its alleged role in the deadly fentanyl supply chain, saying Beijing has cooperated with Washington and arguing that tariffs would not solve the drug problem.
– Next target: EU –
Trump has said that products from the 27-nation European Union would be hit with a tariff of 25 percent, adding that the bloc has “taken advantage of us.”
The EU has vowed to retaliate with proportionate countermeasures.
– Steel and aluminium –
Trump signed orders in February to impose 25-percent tariffs on US steel and aluminium imports from March 12.
Canada is the leading supplier of steel to the United States, followed by Brazil.
– Chips, pharmaceuticals –
Trump has said tariffs on automobiles, semiconductors and pharmaceuticals could come as early as April 2, with a rate of around 25 percent.
For computer chips and pharmaceuticals, he said they could “go very substantially higher over (the) course of a year.”
– Reciprocal tariffs –
Trump has also signed plans for sweeping “reciprocal tariffs” that could hit both allies and adversaries by April 2.
The levies would be tailored to each US trading partner and consider the tariffs they impose on American goods, alongside taxes the White House has said are discriminatory, such as value-added taxes.
On Monday, Trump also signalled tariffs on imported agricultural products. A White House official told AFP this came under his plans for reciprocal tariffs.
– Probes on lumber and copper tariffs –
Trump ordered a probe on Saturday into potential tariffs on lumber imports.
The review, due by November, takes aim at exporters like Canada, Germany and Brazil, with White House officials earlier accusing them of “dumping” lumber into the US market.
Last month, Trump also ordered an investigation into possible levies on US copper imports, which could fuel trade tensions with Chile, the biggest US supplier, as well as Canada.
– Chips, pharmaceuticals –
Trump has said tariffs on automobiles, semiconductors and pharmaceuticals could come as early as April 2, with a rate of around 25 percent.
For computer chips and pharmaceuticals, he said they could “go very substantially higher over (the) course of a year.”