#TrumpTariffs

President Trump’s tariff policy in 2025 has been marked by rapid escalation, unpredictability, and recent de-escalation with China. Early in the year, Trump raised tariffs on Chinese imports multiple times, peaking at 145%, the highest in modern U.S. history, while China retaliated with tariffs up to 125% on American goods. These measures were described as the most significant U.S. protectionist actions since the 1930s and led to warnings from business leaders about imminent price hikes and product shortages.

On May 14, 2025, following negotiations in Geneva, both countries agreed to a significant reduction: the U.S. suspended its 34% reciprocal tariff for 90 days, retaining only a 10% baseline tariff, while China dropped its recent retaliatory tariffs but kept a 10% tariff on U.S. goods. This temporary truce aims to stabilize markets and encourage further talks, but most pre-existing tariffs remain, and the risk of renewed escalation persists. The policy continues to inject uncertainty into global supply chains, with small businesses and automakers reporting significant cost pressures and job cuts as a result