Trump tariffs 2.0 Part II
trade-wars
Two weeks of tariff whiplash: North American duties imposed then rolled back, followed by new steel, aluminium, and reciprocal-tariff measures.
Tracking two weeks of announcements through February 2025: Trump first imposed 25% tariffs on Canada and Mexico and 10% on China (citing fentanyl), then reversed the North American tariffs after negotiations while keeping China’s in place. By mid-February he expanded the protectionist push further — 25% steel and aluminium tariffs effective March 4, plus an executive order on reciprocal tariffs targeting VAT regimes and non-tariff barriers in Japan, India, and the EU. Throughout, the consistent finding is that these tariffs reduce trade volumes, lower output, and diminish welfare for everyone involved.
Originally published on Substack, March 6, 2025.