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(Reuters) -The United States doubled tariffs on steel and aluminium imports on Wednesday, activating a hike in the duties on the imported metals to 50% from the 25% rate introduced in March. The day also marks the Trump administration’s deadline for trading partners to submit their “best offers” to avoid further steep import duties set to take effect in early July.
Last week, a federal appeals court temporarily reinstated U.S. President Donald Trump’s most sweeping tariffs, just a day after a trade court ruled that Trump had overstepped his authority in imposing the duties and ordered an immediate block on them.
The trade court ruling would have lowered the effective U.S. tariff rate to about 6%, but the appeals court’s emergency stay means it will stay at about 15% for now, according to estimates from Oxford Research. Prior to Trump’s return to office in January, the effective U.S. tariff on imports was between 2% and 3%.
In April, Trump imposed a 10% tariff on most countries and suspended higher levies on many trading partners for 90 days. Those duties are still scheduled to kick in on July 8, depending on the outcome of legal actions.
BROAD TARIFFS
A cornerstone of Trump’s vision includes a phased rollout of universal tariffs on all U.S. imports.
Trump had tasked his economics team with devising plans for reciprocal tariffs on every country that taxes U.S. imports and to counteract non-tariff barriers such as vehicle safety rules that exclude U.S. autos, as well as value-added taxes that increase their cost. He has also targeted numerous sectors and is also conducting investigations into certain imports that could trigger additional tariffs.
TARIFFS ON COUNTRIES
Trump’s tariff proposals target several key trade partners; some of them are listed below.
MEXICO AND CANADA: Canada and Mexico are exempt from the U.S. "Liberation Day" tariffs announced on April 2, but remain subject to separate 25% duties imposed under executive orders signed earlier this year.
The tariffs, enacted in March under the International Emergency Economic Powers Act, target imports from both countries over concerns related to illegal immigration and fentanyl trafficking. While most goods that meet USMCA rules of origin are excluded, key sectors such as autos, steel and aluminum are still affected. A 25% tariff applies to non-U.S. content in vehicles and auto parts, even if they qualify under the USMCA.
CHINA: Donald Trump said on Wednesday that Chinese President Xi Jinping is tough and "extremely hard to make a deal with," days after the U.S. President accused China of violating an agreement to roll back tariffs and trade restrictions.
The U.S. and China agreed on May 12 to a 90-day truce, cutting steep reciprocal tariffs imposed earlier this year: Washington lowered rates to 30% from 145%, and Beijing to 10% from 125%.
But Trump said, last week, that China had violated an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals and issued a new veiled threat to get tougher with Beijing.
Trade talks remain "a bit stalled," and a final deal may require direct intervention by Trump and Chinese President Xi Jinping, U.S. Treasury Secretary Scott Bessent said recently.
The trade tensions have been escalating for months. Trump imposed 10% tariffs on Chinese goods in February over fentanyl concerns, with another 10% added in March. China hit back with 10%–15% tariffs and export curbs. In April, the U.S. hiked duties to 54%, then 145%, prompting Beijing to retaliate with a sweeping 125% levy on U.S. goods before the two countries agreed to lower duties.
EUROPE: The current effective tariff rate on goods the U.S. is importing from the European Union is about 10%, after Trump suspended higher levies on many trading partners for 90 days.
Trump on May 23 proposed a 50% tariff on all EU goods starting June 1. He later backed away from that threat, reinstating a July 9 deadline for negotiations with Brussels.
Trump has criticized the EU’s trade surplus with the U.S., demanding increased purchases of American oil and gas, despite export limits on the U.S. side.
After Trump imposed tariffs of 25%, which is currently at 50%, on all steel and aluminum imports in March, the EU had announced plans to impose counter-tariffs on 26 billion euros ($28 billion) worth of U.S. goods in April, targeting Trump’s metals duties.
BRITAIN: The U.S. and the UK have negotiated a limited bilateral trade deal that preserves Trump’s 10% tariffs on British exports while modestly expanding agricultural access for both sides and easing steep U.S. duties on British car imports.
As part of the deal, average British tariffs on U.S. goods will fall to 1.8% from 5.1%, though the 10% levy on British exports remains in place. A UK official noted the agreement excludes Washington’s demand to restructure Britain’s 2% digital services tax on revenues from online marketplaces.
Here is a roundup of Trump’s sector-specific trade steps and threats so far:
Sector Tariff Status Scope
Steel & Effective All
aluminum 50% trading
partners except
Britain
Automobiles 25% Effective All passenger
vehicles, light
trucks and
certain auto
parts
Agriculture At least Effective All agriculture
10% (rates vary products
depending
on country)
Oil & gas At least Effective All imported
10% (rates vary goods,
depending including
on country) energy products
Consumer At least Temporary Smartphones,
electronics 10% exemption laptops, hard
drives,
computer
processors,
memory chips,
etc.
Movies 100% Announced All
foreign-made
movies
Semiconductors 25% Pending Chips,
probe chipmaking
equipment
Pharmaceuticals 25% Pending
($1 = 1.3849 Canadian dollars)