It has been only a week since China imported goods into the USA and received a 10% tariff hike, with Canada and Mexico tariffs postponed. Yesterday, a second set of tariffs was announced that were applied to all steel and aluminium imports. The trouble is that most of these imports come from Canada and Mexico. Does this mean broader tariffs on these two countries are still in play?
In addition to these, it was also mentioned that over the next 48 hours, reciprocal tariffs will be applied. This means the tariff rate will be at the same level as the tariff rate USA imports face when entering that specific country. This would be the first broad-based shock.
Another set of tariffs will be applied on cars, chips and pharmaceuticals over the next four weeks. This will be important as specific categories would be impacting essential goods.
In summation, the next four weeks would conclude the first 45 days in office for the new administration with a major set of tariffs in phase one complete. This would then put focus on the next set of announcements that might involve some exceptions to the same.
It will be important to track the actual price and volume impact along with any retaliation moves done by other countries. However, the next phase of tariffs might be more universal and broader as the unfair trade reports get submitted by 1st April 2025.
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