United States: Recent developments

The US government announced on February 1, 2025, that additional tariffs of 10% would be imposed on imports from China on top of earlier tariffs already in place. The new tariffs, which came into effect just three days later on February 4, granted exemptions only for donations and goods for personal use.

The Chinese government responded by filing a complaint with the World Trade Organization on February 5 and imposing its own tariffs of 10% on crude oil and agricultural equipment and 15% on liquefied natural gas and coal imported from the US effective February 10.

The White House issued an executive order on March 3 imposing a further increase of 10%, bringing the additional tariffs on goods from China and Hong Kong to 20% effective March 4. Germany Trade and Invest has broken down the US tariffs on goods from China.

China responded with countermeasures here too, imposing 15% tariffs on chicken, wheat, corn, and cotton and 10% tariffs on sorghum, soybeans, pork, beef, fishery products, fruit, vegetables, and dairy products effective March 10.

Europe must now navigate a balancing act in trilateral relations between the US, China, and the EU. China remains a vital trade partner as the EU’s largest source of imports and third-largest destination for exports, and is increasingly showing geopolitical ambitions. The EU is currently studying and imposing anti-dumping measures on Chinese goods such as electric vehicles, to which China is responding with duties on spirits and pork. At the same time, however, Europe wants to continue pursuing its transition to green energy and benefiting from global trade with renewable energy components from China.

Also on February 1, 2025, the US government announced tariffs of 25% on Mexico. But these tariffs were suspended before they could take effect on February 4 when Mexican President Claudia Sheinbaum immediately took action to stem drug trafficking from Mexico into the US. The suspension was initially set for four weeks. The tariffs then took effect on March 4. The very next day, US President Donald Trump granted a one-month reprieve for US automakers. Then, on March 6, after another phone call with the Mexican president, he suspended most of the tariffs until April 2: Mexico currently pays no tariffs on goods covered by the United States–Mexico–Canada Agreement (USMCA) negotiated by the three countries during Trump’s first term in office. 

The impact on financial markets is already making itself felt: Tariffs are harming both the Mexican and American economies. European companies that operate production facilities in Mexico to supply the US market are also heavily affected.

Tariffs on imports from Canada were also set at 25%, as with Mexico, and at 10% for imports of energy and potash. But also just as with Mexico, exemptions for goods imported under USMCA have been in place since March 6. Some background: The US is Canada’s largest and most important trading partner, with an annual volume of almost one trillion dollars in goods and services.

Uniform tariffs of 25% have been in effect for most steel and aluminum imports into the US since March 12, 2025. This directly affects Europe, but the previous system of quotas for countries such as the UK, Australia, Canada, Mexico, and Argentina has also been revoked. The White House even threatened Canada with a 50% tariff after Ontario announced a surcharge on electricity exports to the US. The Premier of Ontario agreed to suspend this surcharge after negotiations with the US Department of Commerce, however.

To put this in perspective: The US imports half of its overall demand for aluminum, and Canada represented the largest single source at 3.2 million metric tons annually. The US also imports about one-quarter of the steel it needs, with Mexico and the EU following Canada as the primary source of these imports. 

These measures bring back memories of the punitive tariffs that the US imposed on imports of certain iron, steel, and aluminum products back in 2018. The EU responded at the time with retaliatory tariffs. In a press release dated March 12, the EU Commission has now announced that it will also reinstate these tariffs effective April 1 and take further countermeasures.

The dispute had been previously resolved at the G20 summit in October 2021, when the reciprocal measures were suspended until March 31, 2025. During this suspension, goods of EU origin could be shipped duty-free to the US up to a certain volume. This quota system was lifted, however, with the announcement of the 25% tariffs on steel and aluminum imports that took effect on March 12:

Adjusting Imports of Aluminum into The United States
Adjusting Imports of Steel into The United States

Anyone exporting goods listed under chapters 72, 73, and 76 should keep an eye on developments.

You can search for US tariffs affecting your goods using the View the USA's Harmonized Tariff Schedule, a database maintained by the US International Trade Commission that lists all existing protective tariffs. Simply enter the six-digit HS code for your goods or search by keyword.

You can also use the EU Commission’s Access2Markets database, which lists the current tariffs of all countries. From the main page, enter the six-digit HS code, your country of origin, and the United States under the country of destination.