Here are the latest updates on Trump's tariffs
- *Steel and Aluminum Tariffs*: The 50% tariffs on imported steel and aluminum have come into effect, increasing pressure on users of these imports who were already facing a 25% tax since March.
The Institute of Can Manufacturers warns that this will increase the costs of canned products for millions of American families.
- *Automobiles and Auto Parts*: 25% tariffs are in effect for automobiles and various auto parts.
- *Smartphones*: Apple, Samsung, and other smartphone manufacturers that do not manufacture in the U.S. may face a 25% tariff at the end of June.
- *China*: Trump's tariff rate for China was blocked by a court, but an appeals court allowed the tariffs to remain in effect.
- *Canada and Mexico*: A court blocked Trump's tariffs on Canada and Mexico, but an appeals court said they may remain. A 25% tariff is in effect, with exemptions for products compliant with the USMCA.
- *EU and Other Trade Partners*: Other trade partners face a 10% tariff, which was also blocked by a court but allowed by an appeals court.
- *Global Impact*: Two-thirds of Kiwi companies believe U.S. tariffs would have a more severe global impact than Covid-19 and the Global Financial Crisis. Nearly 80% of exporters are more concerned.
- *International Reactions*: South Korean President Lee Jae-myung criticized Trump's tariffs in his first speech, warning that trade protectionism threatens the country's survival. Other leaders, such as Japan and Singapore, also expressed opposition to Trump's tariffs.
The average effective tariff rate in the U.S. is about 15%, the highest level since 1938, according to estimates from Yale's Budget Lab.
These tariffs have triggered a historic sell-off in the market and are expected to have significant implications for global trade.
