Tariff timeline: Tracking the evolution of Donald Trump's trade war
President Donald Trump continues to threaten major U.S. trade partners with tariffs as his administration overhauls long-standing free trade agreements with allies. The resulting trade war has escalated further with Trump's April 2 announcement of tariffs on all trading partners. Americans may end up feeling an impact in their wallets as businesses pass on tariff-induced pain by raising prices.
China was the first country to respond to the announcement with a 34% retaliatory tariff on U.S. imports. After the April 2 tariffs go into effect, Chinese imports will face a baseline tariff of 54%
The fallout from Trump's actions is already widespread. Consumer confidence in the economy fell to its lowest level in 12 years, according to data from The Conference Board. March saw the largest monthly declines in more than two years for U.S. stock indexes S&P 500 and Nasdaq. A new study by Yale University's Budget Lab shows that tariffs will cut the deepest into budgets of families with the lowest incomes. On the day after Trump's April 2 announcement U.S. stocks closed sharply lower, with the Dow losing nearly 1,700 points and the S&P 500 about 275 points.
Here's a closer look at the latest updates and how we got to this point:
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On March 12, a 25% tariff on imported steel and aluminum went into effect. Before that, tariffs for products made in China increased to 20%, and Trump imposed a 25% tariff on goods from Canada and Mexico, with energy products facing a lower 10% tariff. More recently, Trump signed an executive order that imposes a 25% tariff on all automobile and automobile part imports.
How consumers are affected: Which Americans and things we buy will be hit hardest by Trump's tariffs
This is not the first time Trump has turned to aggressive tariff policies. During his first term in office, he sparked a trade war with China. This time, his targets include China, Canada, Mexico, the European Union and others.
Retaliation from the affected countries has already begun. China imposed tariffs of up to 15% on U.S. agricultural products, Canada announced 25% reciprocal tariffs on steel products and additional American products, and the EU plans to slap a 50% tariff on American spirits.
What's next? When do the April 2 tariffs start?
The 10% worldwide tariffs took effect on April 5, and the higher tariffs on other countries will take effect on April 9, according to the White House.
The 25% tariff on certain automobiles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans, and light trucks) took effect on April 3, and tariffs on certain car parts (engines and engine parts, transmissions and powertrain parts, and electrical components) no later than May 3.
SOURCE Peterson Institute for International Economics, The White House, China Ministry of Finance, Canada Department of Finance, European Commission
If you found this visual story helpful, here are a few more that you may be interested in:
How much more will pay for household goods, groceries, and cars?
The proposed tariffs won't affect all Americans' pocketbooks the same way. A new study by Yale University's Budget Lab shows that while families with the highest incomes will pay the most, the tariffs will cut the deepest into budgets of families with the lowest incomes. Read more here.
What is a tariff?
A tariff is a tax on goods received or imported from another country. Tariffs usually make goods from other countries more expensive and are intended to encourage people to buy goods made in their own country. Read more here.
How are tariffs impacting the economy?
Amid concerns about already high prices that might be driven higher by tariffs, consumer confidence about the economy's future fell in March to its lowest level in 12 years, according to data released Tuesday by The Conference Board. Read more here.