The United States has quickly moved from being a trusted partner in trade agreements and global security to a source of confusion and doubt since President Donald Trump assumed office on January 20.
Where the tariffs stand: So far, he has imposed 25% tariffs on aluminum and steel; 25% tariffs on goods from Mexico and Canada that aren’t compliant with a free trade agreement; a massive 145% duty on Chinese imports; a 25% tariff on cars, with separate tariffs on auto parts coming at a later date; and a 10% baseline tariffs on all US imports.
But those numbers don’t quite capture the whiplash-inducing speed with which Trump has levied tariffs, then walked them back, only to announce more tariffs, with another policy change soon after. This creates difficulties for businesses and nations to contend with the new policies.
On Monday, US Commerce Secretary Howard Lutnick appeared to confirm reporting that a deal has been reached with automakers to ease tariffs, in another potential policy reversal that could grant a major reprieve for a beleaguered industry.
Impacts: The tariffs in place now “will likely slow global economic growth significantly,” Moody’s Ratings said in a recent report. “And the inconsistent approach to policymaking has undermined confidence globally.”
And of course, some countries are shifting away from the US. China has been diversifying its trading relationships since its trade war with the US during Trump’s first administration, and it is currently trying to strengthen trading with the European Union.
Canadian Prime Minister Mark Carney this month posted on social media about speaking with European Commission President Ursula von der Leyen. Von der Leyen noted how Mexico, India and other countries have said they want to work more with the EU.
“Europe is known for its predictability and reliability, which is once again starting to be seen as something very valuable,” she said.
