Geopolitics

U.S. Trade Policy at the Center of Global Economic Tensions

With Mehill Marku — Apr 3, 2025

3 mins watch

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President Trump announced new reciprocal tariffs on April 2nd in order to enhance the United States' international economic position and protect American workers. Under the International Emergency Economic Powers Act, a 10% universal tariff will take effect on April 5th, with higher individualized tariffs implemented on April 9th for about 60 countries accused of practices such as VAT manipulation and subsidies. The tariff list excludes Canada and Mexico, but non-USMCA compliant goods remain subject to a 25% tariff, and China's small businesses will face stricter de minimis rules starting May 2nd.

Despite these measures, the trade war continues, with investigations into products like copper, semiconductors, and pharmaceuticals ongoing. Retaliation by some trading partners is anticipated, while other nations will look to negotiate. The developments from the negotiations between the EU and U.S. and China and the U.S. pose significant risks to global economic growth.

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