Updated April 10th 2025, 18:32 IST
US President Donald Trump has officially paused most of the sweeping tariffs the U.S. imposed earlier this week — except when it comes to China.
As of now, a base 10% tariff on all U.S. imports is still in effect, along with steep duties on specific industries, including steel, aluminum, cars, and soon, pharmaceuticals. Trump’s announcement offers temporary relief to dozens of trading partners, but the move falls short of removing global trade tensions.
Earlier this week, Trump imposed reciprocal tariffs ranging from 11% to 50% on countries he said were treating the U.S. unfairly. But by Wednesday, he changed course, keeping just a 10% flat tariff in place for most of the world, while leaving China fully exposed to new penalties.
“We don’t want to hurt countries that don’t need to be hurt, and they all want to negotiate,” Trump said during a briefing at the White House.
Even with the pause, economists warn the 10% base tariff still poses serious economic risks, creating uncertainty and raising costs across global supply chains.
While other countries got a break, China did not.
On Wednesday, Trump raised tariffs on all Chinese imports to 125%, dramatically escalating the U.S.–China trade war. The two countries have now doubled the cost of many of each other's goods, with no sign of either side backing down.
Steel and Aluminum:
Tariffs on these metals — 25% across the board — remain unchanged since they were first introduced on March 12. These affect a wide range of everyday goods, from pots and pans to golf clubs and furniture.
Cars and Auto Parts:
A 25% tariff on cars and auto parts remains in force as well. While parts compliant with the USMCA trade deal are exempt for now, a process is being developed to tax parts based on their non-U.S. content.
Pharmaceuticals:
Trump has signaled that “major” pharmaceutical tariffs are on the way. Even before official details, markets have already reacted, with pharma companies seeing a dip in their stock values due to the anticipated costs.
While the temporary pause may ease tensions with U.S. allies, it’s clear the Trump administration is still pursuing an aggressive trade agenda — especially with China in its sights.
With new tariffs on medicine expected, and existing duties still straining industries like autos and steel, the broader economic picture remains clouded.
The next few weeks will be critical, as both allies and competitors wait to see if the U.S. continues to dial back — or ramps up — its trade pressure.
Published April 10th 2025, 18:32 IST