Trump has launched another trade war—here’s how we got here

The tariffs imposed by U.S. President Donald Trump have plunged the country into a global trade war, as new duties, amid back-and-forth moves, continue to fuel uncertainty.

Trump is no stranger to using tariffs. During his first term, he started a trade war, targeting China in particular by imposing duties on most of its products. Beijing retaliated with tariffs on U.S. goods, ranging from fruit to imported vehicles. Trump also used the threat of new tariffs to force Canada and Mexico to renegotiate the North American trade deal, resulting in the United States-Mexico-Canada Agreement (USMCA) in 2020.

When President Joe Biden took office, he kept most of Trump’s tariffs on China in place while imposing some new restrictions—though his administration claimed to take a more targeted approach.

Fast-forward to the present, economists warn that Trump’s new sweeping tariffs could have even more significant consequences for businesses and economies worldwide, likely leading to higher prices that eventually hit U.S. consumers. An atmosphere of uncertainty has also emerged due to Trump’s tariff threats and retaliations, including some recently delayed levies on goods from the U.S.’s largest trading partners.

Here’s a timeline of how we got here:

January 20

Trump is sworn into office. In his speech, he vows to “tariff and tax foreign countries to enrich our citizens.” He also reiterates his plans to create an agency called the External Revenue Service, which has yet to be established.

On his first day in office, Trump also said he expected to impose 25% tariffs on Canada and Mexico starting February 1 but refused to immediately detail plans for taxing Chinese imports.

January 26

Trump threatens 25% tariffs on all Colombian imports and other retaliatory measures after President Gustavo Petro rejects two U.S. military aircraft carrying deported migrants, accusing Trump of failing to treat them with dignity.

In response, Petro also announced a 25% retaliatory tariff increase on U.S. goods. However, Colombia later reversed its decision and accepted the flights carrying the migrants. The two countries soon signaled a halt to the trade dispute.

February 1

Trump signs an executive order imposing tariffs on imports from Mexico, Canada, and China—10% on all Chinese imports and 25% on imports from Mexico and Canada, effective February 4. Trump justifies the move by declaring a national emergency, supposedly due to illegal immigration and drug trafficking. The tariffs on Canada and Mexico threaten to destabilize Trump’s USMCA deal, allowing the free movement of many goods across North America.

The decision quickly sparks outrage across the three countries, with promises of retaliatory measures.

February 3

Trump agrees to a 30-day pause on his tariff threats against Mexico and Canada as both trade partners take steps to address his concerns over border security and drug trafficking.

February 4

The new 10% tariffs on all Chinese exports to the U.S. take effect. China responds the same day by announcing a series of countermeasures, including new broad tariffs on various U.S. goods and an antitrust investigation against Google.

China’s 15% tariffs on coal and liquefied natural gas (LNG) products and a 10% duty on imported oil, agricultural machinery, and large-engine cars from the U.S. take effect on February 10.

February 10

Trump announced plans to increase tariffs on steel and aluminum. He removed exemptions from his 2018 steel tariffs, meaning all steel imports will now face at least a 25% duty. He also raised his 2018 aluminum tariffs from 10% to 25%, set to take effect on March 12.

February 13

Trump unveils a plan for “reciprocal” tariffs, pledging to raise U.S. tariffs to match the rates other countries impose on American imports “for fairness.” Economists warn that reciprocal tariffs could undo decades of trade policy and create chaos for global businesses.

Beyond China, Canada, and Mexico, he signals that other nations, such as India, will not be spared from higher tariffs. In the following weeks, Trump suggests that European countries may also face a 25% tariff as part of these efforts.

February 25

Trump signed an executive order directing the Department of Commerce to assess whether a tariff on imported copper is necessary to protect national security. He cites the material’s use in U.S. defense, infrastructure, and emerging technologies.

March 1

Trump signed another executive order instructing the Department of Commerce to evaluate whether tariffs on raw and treated lumber are also needed to safeguard national security, arguing that the construction sector and military rely on a strong domestic wood supply.

March 4

The 25% tariffs on Canadian and Mexican imports take effect, but Trump limits the tax on Canadian energy to 10%. He also doubles tariffs on all Chinese imports to 20%.

All three countries pledge retaliatory measures. Canadian Prime Minister Justin Trudeau announces tariffs on U.S. goods worth over $100 billion within 21 days. Mexican President Claudia Sheinbaum says Mexico will respond with retaliatory tariffs on U.S. imports but does not immediately specify which products will be affected, raising hopes of de-escalation.

Meanwhile, China imposes up to 15% tariffs on a broad range of key U.S. agricultural exports. It also expands the number of American companies subject to export controls and other restrictions by about two dozen.

March 5

Trump granted U.S. automakers a one-month exemption from his new tariffs on Mexican and Canadian goods. He announced the pause after meeting with executives from the “Big Three” automakers: Ford, General Motors, and Stellantis.

March 6

In a broader extension, Trump delays the 25% tariffs on many Mexican imports and some Canadian goods for one month. However, he still plans to impose “reciprocal” tariffs starting April 2.

March 10

In retaliation for Trump’s tariffs, China imposes an additional 15% duty on key U.S. agricultural products, including soybeans, poultry, beef, and pork. The escalation of trade tensions led to a stock market decline on Monday, as investors worried that Trump’s trade wars could harm the U.S. economy.

March 12

Trump raises tariffs on all steel and aluminum imports to 25%, removing exemptions from his 2018 metals tariffs and increasing the aluminum duty from 10%.

Source: Valor

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