Trump will hike Tariffs on China by 10 percent, the EU with 25 percent, but Canada and Mexico increases unknown.
Ten Percent on China
In the past two days have had conflicting statements from Trump on tariffs. Today we have clarification on China, with Mexico and Canada on deck.
The Wall Street Journal reports Trump Plans Another 10% Tariff on Products From China
In a post Thursday on his Truth Social platform, Trump reinforced his threat to impose 25% tariffs on products from Canada and Mexico, saying the U.S. neighbors hadn’t done enough to curb drug smuggling to win another delay for those duties. The administration had postponed the Canada and Mexico tariffs for 30 days at the beginning of February to allow for negotiations.
“[T]he proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump said. “China will likewise be charged an additional 10% Tariff on that date.”
The announcement came a day after Trump appeared to hint that the Canada and Mexico tariffs could be delayed again, telling reporters that they were scheduled for April 2. But the White House backed off those comments, saying a decision hasn’t yet been made on whether to give another reprieve to the North American nations.
China Won’t Be Charged Anything
Trump keeps making economically illiterate statements.
Tariffs will be paid by US importers who are nearly certain to pass those tax hikes to US consumers.
Some of the tax on consumers may be offset by a strengthening dollar, but that only works until it doesn’t.
Offsetting 25 percent tariffs with a strengthening dollar is very unlikely and sure wouldn’t increase exports if it did.
25 Percent Tariffs on ‘Cars and All Other Things’
Car Dealership Guy reports Trump Moves to Hit EU with 25 Percent Tariffs on ‘Cars and All Other Things’
First things first: Trump floated the threat to enact tariffs against the EU—which caught many off guard—when taking questions from reporters, with members of his cabinet team present, saying that the European Union has taken advantage of the US.
- Trump didn’t share any specifics of the levies against the EU or whether the measure is tied to previously announced tariffs, simply saying they would be 25% “on cars and all other things.”
- The President also said that the 25% tariffs against Mexico and Canada will take effect April 2—but that was quickly cleared up by the White House, which indicated that the tariffs against the neighboring countries will indeed go into effect next week.
- Trump’s 10% tariffs against China have already been enacted but have only been imposed on Beijing.
President Trump’s more direct 25% tariff threat against the EU likely caught some off guard in the European Union, given that he recently hosted French President Emmanuel Macron at the White House, in what appears to have been a very positive meeting between the two heads of state, for the most part.
The growing number of tariffs and confusion around which ones will be enacted and when heightens concerns about the measures. More specifically, it puts carmakers in a current state of limbo about the steps they need to take to try to offset the impact of the levies and higher costs that will affect vehicle pricing for dealers and consumers.
Tariff Chaos Contributes to Delivery Delays
Trump is now applying tariffs on everything from China. Previously, packages of $800 or less from China were exempt.
This led to so much postal chaos and confusion that Trump paused the so-called de minimis provision on February 7.
CNN describes the impact in Trump’s Tariffs Chaos is Contributing to Delivery Delays of Goods.
Expect delays of 12-20 days or longer while authorities investigate your $3.29 screwdriver.
Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.
On February 26, 2025, I noted Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.
Trump says it’s full speed ahead with tariffs. It will cost US jobs.
Trade Deficit with China is Understated
On February 18, 2025, I noted US Trade Deficit with China is Understated by as Much as 30 Percent
Normal trade math does not add up. US imports and China exports are not in sync.
The lead chart is from the above link.
A portion of the underreporting is the de minimis exclusion of up to $800. The rest of the underreporting is goods that are from China labeled Vietnam or Mexico.
We will track that now, to make sure you pay proper taxes on your your $3.29 screwdriver and $2.99 flashlight.
Has anyone thought this through?
Of course not. Instead we will fire postal inspectors.
Addendum
I understand this negotiating theory.
But Trump is breaking his own Senate-signed USMCA treaty 89-10
It means
- Trump’s word is worthless
- The US cannot be counted on to honor its treaties