The global trade war is escalating in 2025, with several countries imposing tariffs on each other. Here's a breakdown of the key developments:
Major Players Involved
- United States: Imposed tariffs on China, Canada, Mexico, and the European Union, citing national security and unfair trade practices.
- China: Retaliated with tariffs on US goods, affecting $330 billion of US exports.
- Canada and Mexico: Imposed retaliatory tariffs on US goods, with Canada targeting $20.8 billion and Mexico targeting $86.7 billion.
- European Union: Imposed tariffs of up to 50% on US goods, affecting $8 billion of US exports.
Economic Impact
- US Economy: The tariffs are expected to reduce US GDP by 0.7% and increase tax revenue by $2.9 trillion over the next decade.
- Global Trade: The trade war has resulted in higher prices, reduced trade, and economic losses for all parties involved.
Key Tariffs and Retaliations
- US Tariffs: 25% on steel and aluminum, 10% on Chinese goods, and 20% on EU goods.
- Chinese Retaliation: 34% tariffs on all US exports.
- Canadian Retaliation: 25% tariffs on US goods, including steel and aluminum.
- EU Retaliation: Up to 50% tariffs on US goods, including whiskey and other products.
The ongoing trade tensions between major economies are expected to continue, with potential consequences for global economic growth and trade relations.
