The Blubber

President Trump’s tariffs are reshaping U.S. trade policy, disrupting decades of free-trade agreements with both allies and rivals.

With just over a week remaining before potentially imposing retaliatory tariffs on all U.S. trade partners, Trump has marked April 2 as "Liberation Day." These tariffs aim to fulfill a key campaign promise while generating revenue ahead of a Republican tax and spending bill.

On Friday, Trump hinted at possible "flexibility" in how the tariffs are applied, though he suggested he was reluctant to grant many exemption requests.

Current Trade Developments:

• Steel and Aluminum: A 25% tariff on steel and aluminum imports from all countries took effect on March 12.
• European Union: The EU has retaliated with counter-tariffs on $28 billion worth of U.S. goods starting in April. However, some duties, including a 50% tariff on American whiskey, have been delayed until mid-April. In response, Trump has threatened a 200% tariff on European spirits.
• Canada and Mexico: Trump’s 25% tariffs on imports from both neighbors took effect on March 4. Shortly after, the U.S. announced a temporary pause on tariffs for goods and services complying with the United States-Mexico-Canada Agreement (USMCA) until April 2. Canada has responded with new tariffs on $20 billion worth of U.S. goods, and both countries have agreed to new trade negotiations.
• China: Trump has increased tariffs to around 20% on top of existing 10% duties from his first term. China has responded with up to 15% tariffs on U.S. agricultural products such as chicken and pork, which took effect Monday.