#TrumpTariffs Trump escalated an ongoing trade war with China, raising baseline tariffs on Chinese imports to 145%. In retaliation, China imposed a minimum 125% tariff on US goods and restricted exports of rare earths critical to high-tech industries. Trump also initiated a trade war with Canada and Mexico by imposing a 25% tariff on both countries, but later granted indefinite exemptions for goods compliant with the USMCA. He framed these actions as efforts to hold the countries accountable for contraband drug trafficking and illegal immigration, while also supporting domestic manufacturing.[3][4] Trump subsequently added a 25% tariff on steel, aluminum, and automobiles from all countries.

On April 2—a day he called "Liberation Day"—Trump announced a minimum 10% tariff on all US imports, effective April 5, and higher tariffs on imports from 57 countries. The announcement of these controversially[5][6][7][8] named "reciprocal tariffs" prompted retaliation from trade partners and triggered a stock market crash.[9] According to the Trump administration's reciprocal tariff formula, trade deficits are seen as inherently harmful and in need of removal,[10] a view many economists rejected as a flawed understanding of trade.[11][12][13][14] Trump also announced he would close the de minimis exemption for China beginning May 2, and for all countries at a future date.