Trump’s Tariff Turbulence Continues, With No End in Sight

President Trump’s hot and cold attitude towards tariffs continues to cause confusion and an inability to plan ahead. On April 2, President Trump imposed so-called reciprocal tariffs, which included a baseline tariff on all imported goods and increased tariffs on certain countries, only to impose a 90-day delay on the country-specific increases last week after the market reacted poorly. Although it may seem that imposing and delaying tariffs is becoming a pattern, President Trump will likely keep us guessing.

On April 2, President Trump imposed a new 10% baseline tariff on all imported goods, which was increased for certain countries listed in an annex ranging from 11% to 50%.[1] The 10% tariff went into effect on April 5, and the country-specific increases were to take effect on April 9.

After announcing the tariffs, the Trump administration sent mixed signals as to whether the tariffs would stick and whether the administration was open to negotiate. Commerce Secretary Howard Lutnick initially said that he did not think President Trump would back off his tariffs and later repeated that the tariffs “are definitely going to stay in place for days and weeks.” But President Trump told reporters that the tariffs put him in a “terrific position to negotiate,” and U.S. Trade Representative Jamieson Greer encouraged countries to come forward with offers to rebalance trade, by reducing both their tariff and non-tariff barriers.

As for China, President Trump had recently imposed a 20% tariff on goods from China, and the April 2 order imposed an additional 34% reciprocal tariff on goods from China. President Trump also signed a second executive order eliminating the “de minimis loophole” for goods from China and imposing a 30% tariff on de minimis goods, which is set to take effect on May 2.[2]

In response to the initial 20% tariff, China imposed relatively muted retaliatory tariffs, including a 15% tariff on U.S. chicken, wheat, corn, and cotton and a 10% tariff on U.S. sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products, among others. But in response to the new reciprocal tariffs, China criticized the tariffs as “inconsistent with international trade rules” and matched the U.S. reciprocal tariff by imposing a 34% tariff on all goods imported from the U.S. starting April 10. China also imposed export controls on certain types of rare earth elements, added 16 U.S. entities to an export-control list, and added 11 entities to an “unreliable entity list,” which effectively restricts them from doing business in China.

After China announced its retaliation, President Trump quickly threatened to impose an additional 50% tariff on goods from China if China maintained its retaliatory tariffs. Then, on April 8, President Trump signed an executive order to raise tariffs on goods from China to 84%.[3] The order also hiked the tariff on de minimis goods to 90% up from 30%.

And then on April 9, hours after the country-specific increased tariffs took effect, President Trump back-tracked once again and partially delayed the reciprocal tariffs for everyone but China.[4] Specifically, President Trump delayed the country-specific increased tariffs until July 9, 2025, but the 10% baseline tariff on all imported goods remains in effect. And as for China, President Trump again increased the reciprocal tariff on goods from China to 125% and the tariff on de minimis goods to 120%. This brings the tariff on most goods from China to 145%.

China then responded on April 11, likewise raising its retaliatory tariffs to 125%. The same day, President Xi Jinping met with Spanish Prime Minister Pedro Sánchez and suggested that the European Union and China begin to work together to resist President Trump’s trade war. This was after the E.U. suspended its retaliatory tariffs on certain goods from the U.S. for ninety days before they took effect, with European Commission President Ursula von der Leyen stating the E.U. wants to give negotiations a chance.

Then, late on April 11, President Trump clarified that smartphones, computers, and other electronics are excepted from the reciprocal tariffs.[5] This means that such products are exempt from the 10% baseline tariff and the 125% tariff on goods from China. However, the administration stated that the initial 20% tariff on goods from China would still apply. Two days later, on April 13, President Trump reversed again and stated that the reprieve was only temporary because tariffs on semiconductors are coming and would apply to such electronics. It is unclear when tariffs on semiconductors will be imposed.

Pressing forward, the path is unclear. To recap the past couple months, the following tariffs are currently in effect:

• 25% tariffs on aluminum, steel, and automobiles;
• 25% tariffs on goods from Canada and Mexico that are not compliant with United States-Mexico-Canada Agreement (USMCA);
• 10% baseline tariff on all imported goods; and
• 145% tariff on goods from China.

For now, the tariff on USMCA-compliant goods and the country-specific reciprocal tariffs are suspended. Retaliation and negotiations will continue, but the ultimate outcome is uncertain.

As this uncertainty continues, the Adams & Reese Global Trade & Transportation Team will continue to monitor the situation.

FOOTNOTES

        [1]     Exec. Order No. 14,257, 90 Fed. Reg. 15041 (Apr. 7, 2025).

        [2]     Exec. Order No. 14,256, 90 Fed. Reg. 14899 (Apr. 7, 2025).

        [3]     Exec. Order No. 14,259, 90 Fed. Reg. 15509 (Apr. 14, 2025).

        [4]     Exec. Order, Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment (Apr. 9, 2025).

        [5]     Presidential Mem., Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as Amended (Apr. 11, 2025).