#TrumpTariffs As of June 4, 2025, President Donald Trump has significantly escalated his tariff policies, marking a pivotal shift in U.S. trade strategy. Here's an overview of the current developments:
---
๐ง Major Tariff Actions
Steel and Aluminum Tariffs: Effective today, tariffs on nearly all imported steel and aluminum have doubled from 25% to 50%. The United Kingdom is exempt under a prior agreement, though its compliance remains under review.
Universal and Country-Specific Tariffs: A 10% universal tariff on all imports was introduced in April, with higher rates for specific countriesโChina faces a 54% effective tariff, Vietnam 46%, and the EU 20%. Canada and Mexico were initially excluded from further increases.
Section 232 Investigations: New tariffs targeting sectors like copper, lumber, pharmaceuticals, semiconductors, and commercial aircraft are under consideration, justified on national security grounds. These are separate from the broader reciprocal tariffs and are pending further investigation and public comment.
---
๐ Global Reactions and Economic Impact
China: After a temporary de-escalation in May, tensions have resurged. China had previously reduced tariffs from 145% to 30%, but disputes over rare earth exports and mutual accusations of agreement violations have reignited trade frictions.
European Union: The EU has expressed intent to retaliate against the increased U.S. tariffs on steel and aluminum, with specific countermeasures expected soon.
OECD Economic Outlook: The OECD forecasts a slowdown in global economic growth to 2.9% in 2025, attributing the decline largely to the uncertainties and disruptions caused by the ongoing trade tensions. U.S. growth is projected to decrease from 2.8% in 2024 to 1.6% in 2025.
---
๐ Market Response
The financial markets have shown resilience amid these developments:
SPDR S&P 500 ETF Trust (SPY): Currently trading at $596.09, up 0.57% from the previous close.
SPDR Dow Jones Industrial Average ETF (DIA): Trading at $426.01, an increase of 0.52%.
