US President Donald Trump is aiming to reshape the country's trade policy using one of his preferred economic tools: tariffs.
Here's where things stand with various US trade partners:
China: Duties on China went into effect in early February, and China retaliated. Beijing on Friday reportedly vowed to use all necessary countermeasures to the additional 10% tariff on Chinese imports Trump plans to impose in March.
Canada and Mexico: After reneging on plans earlier this month, Trump has once again threatened to impose 25% across-the-board tariffs on US neighbors Canada and Mexico. A new deadline for their imposition is set for March 4. On Friday, US Treasury Secretary Scott Bessent said Mexico proposed matching US tariffs on China during trade negotiations, and he suggested Canada follows suit.
European Union: Trump threatened looming tariffs on the EU in a move that could bring his trade war across the Atlantic.
Earlier in February, Trump ordered a 25% tariff on all imports of steel and aluminum into the US from all countries. The trade escalation impacts top trading partners and bolsters industries in US states key to Trump's election.
In addition, Trump signed a measure that could lead to the implementation of reciprocal tariffs on US trading partners as soon as April, aiming to fulfill a frequent campaign promise and also raise revenue as Republicans ready a tax and spending bill. Trump is also planning new levies on imported automobiles — also for implementation around April.
The trade posturing could have ramifications for inflation, with the potential to push prices higher. That, in turn, could influence where the Federal Reserve takes interest rates in the coming months — and years.
U.S. Treasury Secretary Scott Bessent said on Friday that Mexico has proposed matching U.S. tariffs on China in a move that he described as "very interesting" and one that Canada should match.
Top Mexican officials have met with members of Trump's cabinet this week for trade talks ahead of a March 4 deadline, when U.S. President Donald Trump's proposed tariffs on Mexican and Canadian imports are set to get into effect alongside an additional 10% duty on Chinese imports.
"I think it would be a nice gesture if the Canadians did it also so in a way we could have fortress North America from the flood of Chinese imports that's coming out of the most unbalanced economy in the history of modern times," Bessent said in an interview with Bloomberg TV.
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