Donald Trump drops tariff bombshell, sparks trade war, then applies brakes: How we got here

Donald Trump’s reciprocal tariffs on countries and retaliatory measures in tit-for-tat at him by China and the European Union have pushed the global economy into a state of heightened uncertainty, something being called as “trade war”.

US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, on April 2. (REUTERS)

Donald Trump, who previously led a trade war during his first term by targeting Chinese imports, has once again embraced aggressive tariff policies since returning to office.

This time, his measures are broader and more sweeping, targeting not only China, but also traditional allies like Canada, Mexico, and the European Union along with India. The result: a fast-moving trade standoff with rising costs for global businesses and consumers along with shaken stock markets across the world.

Here’s a timeline of how we got here:

– January 20

Donald Trump was sworn into office for his second term as US President on January 20 and in his inaugural address, he again promised to “tariff and tax foreign countries to enrich our citizens.” He reiterated plans to create an agency called the External Revenue Service, which has yet to be established.

On the first day after returning to the White House, Donald Trump also said he expects to put 25 per cent tariffs on Canada and Mexico starting on February 1, while declining to immediately flesh out plans for taxing Chinese imports.

– January 26

Donald Trump on January 26 threatens 25 per cent tariffs on Colombian imports after President Gustavo Petro rejects US deportation flights. Colombia briefly retaliates with its own 25 per cent tariff on US goods but later backs down.

– February 1

Donald Trump on February 1 signed an executive order imposing 10 per cent tariffs on Chinese imports, 25 per cent tariffs on goods from Mexico and Canada and invoked a national emergency over immigration and drug trafficking to justify the move.

– February 3

Donald Trump on February 3 paused tariffs on Mexico and Canada for 30 days after the countries show willingness to address US border concerns.

– February 4

On February 4, the 10 per cent tariff on Chinese imports took effect. China then immediately responded with: 15 per cent tariffs on coal and LNG; 10 per cent levies on crude oil, agricultural machinery, and large-engine vehicles.

– February 10

Donald Trump on February 10 announced plans to raise steel and aluminum tariffs in March.

Steel: 25 per cent across the board.

Aluminum: Increased from 10 per cent to 25 per cent.

– February 13

Donald Trump on February 13 introduced a “reciprocal tariff” plan, threatening to match foreign import duties. Countries that were expected to be affected were China, India, the EU, Japan, South Korea and others.

– February 25

On February 25, Donald Trump signed an order to explore tariffs on imported copper, citing national security concerns.

– March 1

On March 1, Trump took similar action on lumber and timber imports, claiming domestic supply is critical to construction and defense.

– March 4

On March 4, 25 per cent tariffs on Canadian and Mexican goods went into effect — except for Canadian energy (10 per cent).

China faced an increased tariff of 20 per cent on all imports.

Canada and Mexico vowed retaliation, while China imposed up to 15 per cent tariffs on US farm goods (effective March 10).

– March 5

US automakers on March 5 got a one-month exemption on tariffs for some imports from Mexico and Canada.

– March 6

On March 6, Donald Trump expanded tariff exemptions for Mexico and Canada, postponing full implementation until April.

Canada suspended additional retaliatory tariffs worth $87 billion.

– March 10

China on March 10 enacts its 15 per cent tariffs on US agricultural products (soybeans, pork, beef).

Transit exemption was applied until April 12.

– March 12

Steel and aluminum tariffs took full effect on March 12.

Steel: 25 per cent globally.

Aluminum: Raised to 25 per cent.

EU announced retaliatory tariffs worth $28 billion but delayed immediate implementation.

Meanwhile, Canada pledged $20.7 billion in counter-tariffs.

– March 13

Donald Trump on March 13 threatened 200 per cent tariffs on European wine and spirits if the EU follows through on its 50 per cent whiskey tariff plan.

– March 24

Donald Trump on March 24 announced a 25 per cent tariff on all imports from countries buying oil from Venezuela, effective April 2.

China — Venezuela’s top oil buyer — was expected to be hit the hardest.

– March 26

Trump on March 26 unveiled 25 per cent tariffs on auto imports, effective April 3. Auto parts were to be taxed starting May 3.

– April 2

Donald Trump’s “reciprocal tariffs” were announced:

This included a 10 per cent baseline tariff on all imports (from April 5) and,

higher country-specific rates (from April 9):

China: 34 per cent

EU: 20 per cent

Japan: 24 per cent

South Korea: 25 per cent

Taiwan: 32 per cent

India: 26 per cent

USMCA-compliant goods from Canada/Mexico remained exempted.

– April 3

Auto tariffs went into effect and Canada retaliated with a 25 per cent tariff on US vehicles.

– April 4

China announced a 34 per cent tariff on all US imports starting April 10. It added to the export restrictions on rare earth materials.

China blacklisted 27 US companies for trade sanctions.

– April 5

A 10 per cent blanket tariff on global imports took effect in the US.

– April 9

Higher reciprocal tariffs came into effect — but most were paused for 90 days later in the day after China hit back at Donald Trump’s levies with an 84 per cent duty on US goods. However, the reason Donald Trump gave for pausing the tariffs for 90 days was not the pressure by China but the response by other countries who reached out for talks rather than retaliating.

Donald Trump, blaming China for “lack of respect”, increased to 125 per cent the tariffs on Beijing “effective immediately.”

China on April 9 slapped 84 per cent total tariffs on US goods starting April 10. Canada implemented 25 per cent auto tariff on non-USMCA US imports.

EU, meanwhile, approved phased retaliatory tariffs on $23B in US goods, beginning April 15.

– April 10

The European Union on Thursday said it is putting on hold the countermeasures against US President Donald Trump’s sweeping tariff it announced on Wednesday, for 90 days.