Following ongoing tariff disputes involving the United States, a series of events have unfolded, largely driven by former President Donald Trump and current President Joe Biden’s policies. These actions have resulted in heightened tensions with major trading partners like Mexico, Canada, and China, adding uncertainty to international trade.
Under Trump’s first term, initiated in 2017, he targeted China, alleging unfair practices such as forced technology transfers and intellectual property theft. This led to a back-and-forth imposition of tariffs between the two countries, affecting a wide range of products including agricultural goods, technology, and automotive parts. Further, Trump imposed substantial tariffs on steel and aluminum, citing national security reasons, and pressured Canada and Mexico into renegotiating the North American trade deal, known as the USMCA.
Biden maintained many of Trump’s tariffs on China but pursued a more focused strategy. In a significant move, his administration imposed restrictions on semiconductor sales to China, citing potential national security threats. Later, Biden heightened tariffs on Chinese electric vehicles and certain metals, while simultaneously taking measures against imports from Mexico.
The increasing trade tensions came into sharp focus during the 2024 U.S. presidential campaign. Both Biden and Trump used tariffs in their respective platforms to show toughness on international trade, especially regarding China. Biden and Vice-President Kamala Harris criticized Trump’s broad tariff proposals, arguing they would act as a “national sales tax” burdening American families.
The situation escalated after Trump’s reelection in November 2024. He signaled aggressive tariff plans and created the External Revenue Service to enforce these policies. Early into his new term, Trump started imposing tariffs of up to 25% on imports from Canada and Mexico, reigniting trade disputes. This move threatened the stability of the USMCA, causing strong reactions from Canadian and Mexican leaders who promised countermeasures.
Despite temporary pauses and negotiations with Mexico and Canada to address concerns like border security and drug trafficking, tensions persisted. Simultaneously, tariffs on goods from China remained a contentious issue, with China implementing counter-tariffs on essential American exports such as soybeans and beef, affecting U.S. financial markets.
In March 2024, Trump adjusted the tariffs, offering temporary exemptions for U.S. automakers and extending deferments in response to progress with border issues. However, these actions were insufficient to restore confidence, as the international business community remained wary of the ongoing trade unpredictability.
The trade landscape hence continues to be fraught with challenges, as escalating tariffs and reciprocal measures dampen market sentiment and pose risks to global economic stability. The impact of these tensions on trade relations and economic policies remains a critical area of observation and negotiation going forward.
