#TrumpTariffs Key Features of the 2025 Tariffs :

1. National Emergency Declaration

President Trump invoked the **International Emergency Economic Powers Act (IEEPA)** to declare a national emergency over trade deficits and non-reciprocal trade practices. This allowed unilateral tariff impositions, including:

- A 10% baseline tariff on nearly all imports (effective April 5, 2025) .

Higher "reciprocal tariffs" (11–50%) targeting 57 countries with large U.S. trade deficits, initially set for April 9 but suspended until July 9 for all except China .

2. Sector-Specific Tariffs

- 25% tariffs on steel, aluminum, and automobiles (under Section 232 national security provisions) .

- 145% baseline tariffs on China, later reduced to 30% after negotiations (including a 90-day suspension of retaliatory measures) .

3. Exemptions and Exceptions

- USMCA-compliant goods from Canada and Mexico remained duty-free, while non-compliant goods faced 10–25% tariffs .

- Exempted items included pharmaceuticals, semiconductors, energy resources, and products already under Section 232 tariffs .

4. Economic and Market Impact

- Triggered a stock market crash and downgraded GDP growth projections .

- Small businesses faced challenges due to tariffs still at 30–54% on Chinese goods, despite temporary suspensions .

5. Negotiations and Retaliations

- China: Agreed to reduce retaliatory tariffs (from 125% to 34%) and suspend export controls on rare earth minerals. The U.S. retained pre-existing tariffs (e.g., Section 301) but suspended newer ones .

- UK Deal: Reduced tariffs on British metals and cars in exchange for U.S. agricultural exports .

- EU and Others: Retaliatory tariffs threatened, including EU plans for 25% duties on $8 billion of U.S. goods .