Since returning to the White House in January, US President Donald Trump has threatened a series of sweeping new tariffs.
The proposed tariffs, which target major US trading partners, could upend traditional trading relations, creating significant uncertainty in the global economy.
For a better visual understanding of the tariffs and their possible impact, see the following infographics and be sure to revisit this page for insights on future developments.
Reciprocal tariffs
In mid-February, Trump announced plans for reciprocal tariffs and trade practices with partners. US officials will now be examining where trade partners charge higher tariffs on products than the US does for access to its market.
While these evaluations will most likely look at specific tariff lines, average applied tariffs are relatively symmetrical across major economies, with a few exceptions.
Trade experts have raised a few questions around how these changes will be implemented.
The current trade system is based on the “most-favoured nation” (MFN) principle where tariffs lowered for one World Trade Organization (WTO) member apply to all others. Nations can lower tariffs below MFN level for specific partners when they enter into a free trade deal. That becomes known as the applied tariff.
To benefit from an available lower tariff, importers need to provide documentation demonstrating product origin. Nations can also increase tariffs above MFN level for specific countries using anti-dumping or other special measures.
Notably, the Trump administration has indicated they will evaluate reciprocal trade based not just on partners’ tariff levels, but also on non-tariff barriers. These includes measures like foreign-government subsidies, value-added taxes and digital taxes.
Tariffs on steel and aluminium
Earlier in February, Trump announced plans to impose tariffs of 25% on all US steel and aluminium imports, starting from 12 March.
By contrast with the metals tariffs announced in his first administration, Trump cautioned there would be no country exemptions and product exclusions, and that more downstream products would be included.
The US imports about 25% of the steel it uses, and about 50% of its aluminium.
Weforum