In a sweeping move, President Donald Trump initiated tariff conflicts with nearly all of the United States’ key trading partners. The unpredictable nature of these trade levies took another turn on Wednesday when a sudden 90-day suspension was announced for the latest batch of import taxes, only hours after they came into effect.
As Wednesday dawned, multiple nations braced for an escalation in duties from the U.S. This action was part of Trump’s comprehensive tariff strategy, which he describes as “reciprocal.” Just hours later, the White House declared a reprieve, maintaining a 10% tariff rate on almost all international imports for a 90-day period instead of escalating them, except when dealing with China.
Trump has been particularly stringent with China, stating on social platforms that tariffs on Chinese goods would surge to 125% “effective immediately.” This move further intensifies the tit-for-tat trade measures that have been mounting between the two nations.
Amid numerous tariff rounds and threats, keeping track of the current state of import duties is challenging. Various import taxes remain active, with a few modifications explained in detail.
**What Changed on Wednesday?**
Before the 90-day deferment announcement, Trump’s broadest round of tariffs kicked in early Wednesday morning. Initially revealed on April 2 — a date Trump termed “Liberation Day” — this new set of taxes was part of a larger “reciprocal” trade initiative. Trump justified these measures by alleging longstanding exploitation of the United States and decided to levy minimum taxes of 10% on most trade partners, with steeper duties for those nations maintaining a trade surplus with the U.S.
The base 10% tariff was enacted earlier, on Saturday, and will remain intact. As for the heftier levies, which could have reached 50%, they are postponed for the time being. This pause presents an opportunity for the administration to engage foreign leaders in trade negotiations.
On Wednesday, Trump expressed that “more than 75 Countries” proactively contacted Washington for dialogue without significant retaliatory gestures, motivating the suspension.
The heightened tariffs on Chinese goods still advanced, reflecting Trump’s resolve. His action raised total tariffs against China to 125%, a hefty increase aimed at underlining the impracticability of China’s current trade practices with the U.S.
Economists warn that these enlarging duties are likely to inflate consumer prices, as they overlap with pre-existing tariffs, stirring market volatility. For those nations under the current respite, the entitlement to a 10% tariff represents an increase from previous U.S. tariff standards.
**What’s Next on the Tariff Trail?**
New tariffs are on the horizon as well. China declared a new 84% levy on American imports starting Thursday. This move followed Trump’s tariff hikes and represents a retaliatory step.
China’s Ministry of Commerce has vowed further action, suggesting that it is ready to bolster countermeasures if necessary, highlighting the persistent tension stemming from the tariff disputes initiated during Trump’s tenure and building up under successive administrations.
Other nations, while less severe than China, also plan responses. The European Union approved their retaliatory tariffs on $23 billion worth of U.S. goods, in reaction to Trump’s earlier steel and aluminum tariffs. This levy will unfold in phases throughout the year.
Some countries in the international community remain hopeful for negotiated solutions, describing the U.S. tariffs as unwarranted and harmful. The EU had previously proposed a zero-tariff agreement for industrial goods, prior to the temporary halt in Trump’s higher tariff rates.
Trump might introduce further product-specific tariffs targeting various industries, such as pharmaceuticals. During a Tuesday speech, he hinted at delivering significant tariff news soon, emphasizing a focus on the pharmaceutical industry and the goal of reviving drug production domestically.
**Existing Import Taxes**
Several tariffs remain in force, including Trump’s foundational 10% tax implemented on Saturday. Prior rounds of tariffs targeting select nations and products were established, with 25% duties on cars becoming effective last Thursday.
Canada reciprocated with a 25% tariff on American auto imports, commencing Wednesday, for those not operating under the US-Mexico-Canada Agreement terms.
U.S. steel and aluminum tariffs, raised in March, see both metals assigned a 25% duty, with a removal of previous exemptions.
Trump previously enacted, and subsequently relaxed, duties on Mexico and Canada, maintaining a 25% fee on some goods while keeping trade compliant with the USMCA duty-free. Others carry lesser taxes. Once U.S. conditions on migration and drug trade are met, tariffs on non-compliant products might reduce.