President Donald Trump has threatened to slap dozens of countries with specialized tariffs, along with taxes on imports that would affect every other nation. That could affect trillions of dollars in trade, strain relationships with allies and trading partners, and raise prices on all kinds of goods.
The U.S. imported more than $3.25 trillion in goods in 2024, according to data released Wednesday by the U.S. Census Bureau, which did not break out country-by-country data. As of last November, 41% of all imports came from Canada, Mexico, and China, which are expected to be the first countries hit with tariffs under the Trump administration.
After winning the presidential election, Trump threatened to hit China, Canada, and Mexico with tariffs unless they met his various demands related to the flow of fentanyl and migrants at the U.S. borders. Ahead of the election, he had proposed tariffs of up to 60% on Chinese goods and 200% on Mexican vehicles.
A 10% tariff on Chinese imports and 25% on Mexican and Canadian imports is set to go into effect as soon as Saturday, Feb. 1. According to the Tax Foundation, such tariffs would shrink economic output by 0.4% and grow taxes by $1.2 trillion between 2025 and 2034.
“As far as I know, they are acting swiftly, and if they execute it, there will be no tariff,” Howard Lutnick, the Cantor Fitzgerald CEO and Trump’s pick to lead the Commerce Department, testified Wednesday.
Trump has argued that tariffs can both be used to reduce trade deficits — which occur when a nation imports more than it exports — and get non-economic victories. He used the threat of tariffs earlier this week as a tool during a dispute with Colombia — which his predecessor has called “the key” to the southern hemisphere — over his deportation plans.
Trump has told the BRICS coalition — Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates — they would face 100% tariffs if they try to “replace the mighty U.S. Dollar.” In December, he warned the 27-member European Union that he would issue tariffs to close trade deficits unless the nations bought more oil.
The president has also leveraged tariffs to try and force a meeting with Russian President Vladimir Putin to put an end to the Russia-Ukraine War and refused to rule out implementing tariffs to help the U.S. buy Greenland from Denmark, make Canada part of the U.S., and acquire the Panama Canal.
Then, there are his non-specific threats.
The president has also threatened universal tariffs of between 10% and 20% on imports from more than 190 countries, although Trump said last week that “we’re not ready for that just yet.” Treasury Secretary Scott Bessent is pushing for universal tariffs to begin with a 2.5% levy on imports that would grow sequentially each month, the Financial Times reports.
Lutnick on Wednesday said he has advised Trump to look at country-by-country tariffs. Such tariffs would restore “reciprocity” to the U.S.’s trading relationships, he said.
While speaking at the World Economic Forum in Davos, Switzerland, Trump told businesses to build in America and pay “among the lowest taxes of any nation on Earth.” “But if you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff,” he added.
The president has also said the U.S. is “taking a look at” tariffs on semiconductors, pharmaceuticals, aluminum, and copper. Those tariffs would largely impact Taiwan, Canada, China, India, and Mexico. In 2018, he issued 25% tariffs on steel and 10% on aluminum from most countries, sparking a trade war with China and angering several countries, including India and Canada.
Tariffs would likely raise the prices of imported goods, such as food and clothing. Since most companies wouldn’t absorb much of the higher costs, consumers would likely have to pay higher prices for many imported products.
Several business executives have said tariffs will impact their operations, although many companies ramped up imports ahead of Trump’s inauguration to avoid any extra costs. A trade war may also break out, with countries like Mexico and China imposing retaliatory tariffs on the U.S.
During his first administration, Trump imposed almost $80 billion worth of new taxes through tariffs on products valued at about $380 billion in 2018 and 2019, according to the Tax Foundation. Former President Joe Biden kept most of those taxes in place and added additional tariffs on Chinese goods. Trade war policies have boosted tax collections by up to $300 per U.S. household each year, the Tax Foundation said.
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