US President Donald Trump is aiming to reshape the country's trade policy using one of his preferred economic tools: tariffs.
Here's where things stand with various US trade partners:
Canada and Mexico: Trump has threatened to impose 25% across-the-board tariffs on its US neighbors on March 4, after earlier reneging on those plans. On Sunday, Commerce Secretary Howard Lutnick suggested the US may not set duties at the full 25% amount. Also, Treasury Secretary Scott Bessent has suggested that Canada follow Mexico's proposal that it matches US tariffs on China.
China: Duties on China went into effect in early February, and China retaliated. Beijing is reportedly eyeing duties on US food and agriculture products in retaliation to the additional 10% tariff scheduled to hit on March 4.
European Union: Trump threatened looming tariffs on the EU in a move that could bring his trade war across the Atlantic.
In February, Trump ordered a 25% tariff on all imports of steel and aluminum into the US from all countries. The trade escalation impacts top trading partners and bolsters industries in US states key to Trump's election.
In addition, Trump signed a measure that could lead to the implementation of reciprocal tariffs on US trading partners as soon as April, aiming to fulfill a frequent campaign promise and also raise revenue as Republicans ready a tax and spending bill. Trump is also planning new levies on imported automobiles — also for implementation around April.
The trade posturing could have ramifications for inflation, with the potential to push prices higher. That, in turn, could influence where the Federal Reserve takes interest rates in the coming months — and years.
https://finance.yahoo.com/news/live/live-lutnick-hints-canada-mexico-may-not-face-full-25-tariffs-as-deadline-nears-191201930.html
