Tariffs

 Fiscal Focus: Trump's Tariff Blitz Reshapes Global Trade Landscape

Published: February 15, 2025

February 2025: Tariff Tensions Escalate

President Donald Trump introduced 25% tariffs on Canadian and Mexican imports because he wanted to stop illegal immigration and drug trafficking. The Trump administration delayed the implementation of the tariffs from February 4 until the following month after reaching an agreement. The Trump administration started imposing 10% tariffs on all Chinese imports at the same time they increased tensions with Beijing. The Chinese government retaliated against U.S. products by imposing tariffs on coal and liquefied natural gas imports.

March 2025: Trade Wars Intensify

The U.S. implemented the postponed tariffs on Canadian and Mexican imports on March 4. The Canadian government imposed 25% tariffs on $20 billion worth of American products as a response while Mexico organized its own retaliatory actions. The U.S. raised Chinese import tariffs to 20% which led China to apply more tariffs on U.S. agricultural products. The U.S. and China raised their tariffs levels to 145% and 125% respectively on all imported goods between them by March's end.


Economic Impact and Global Repercussions

The tariffs caused major economic effects throughout the market. Stock Market volatility: The U.S. stock market declined because investors feared the trade war would continue indefinitely. Retailers predicted rising prices and possible product shortages, especially during the holiday season, because of the tariffs. The European Union demonstrated its worry about trade war risks through discussions about EU-specific retaliatory actions if tariffs expanded to EU products..

Looking Ahead

As of mid-February 2025, the global trade landscape is marked by investors' heightened fears and uncertainty. We will only know the full impacts of these tariffs heading into the next few months, and what they really hold for the US Economy.

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