Trade Tensions Escalate: A Breakdown of Key Tariff Moves
Article published on March 3rd, 2025 3:30AM UK Time
Global trade tensions are heating up as a series of tariff measures come into effect, signaling a new phase in the ongoing economic standoff. The latest actions by the US and China, alongside broader trade policy shifts, are set to shape market sentiment in the coming weeks.
Key Developments in the Tariff Timeline
- February 4th – The US imposed an additional 10% tariff on Chinese imports, adding to existing levies. This move coincided with China implementing export controls on critical minerals such as tungsten, tellurium, bismuth, molybdenum, and indium. While Beijing refrained from specifying targeted nations, the restrictions are likely to disrupt global supply chains, particularly in high-tech and defense sectors.
- February 10th – China retaliated with tariffs on US imports, introducing a 15% levy on US coal and LNG, along with a 10% tariff on US oil. The energy sector will be closely monitoring these developments, as the potential impact on global energy markets remains a key concern.
- March 4th – A crucial turning point approaches as a tariff pause on Mexico and Canada expires. Additionally, another 10% tariff on Chinese goods will be enacted, compounding the February 4th measures. The combined effect of these tariffs could further strain US-China trade relations and trigger countermeasures from Beijing.
- March 12th – The US is set to enforce a 25% tariff on steel and aluminum imports, with no stated exceptions or exemptions. This decision could have significant implications for global metals markets and manufacturing industries, potentially leading to increased costs for industrial producers.
- April 1st – The US trade policy review is expected to be completed, potentially shaping the administration’s approach to future trade relations.
- April 2nd – Auto tariffs “in the neighborhood of 25%” will take effect. This could be a major development for international car manufacturers and supply chains, with Europe and Asia likely to bear the brunt of the impact.
- To Be Confirmed – New tariffs on pharmaceuticals and semiconductors are under discussion. Given the critical nature of these industries, any formal announcement could lead to significant market volatility, particularly in the technology and healthcare sectors.
Market Implications and Risks
These tariff measures mark a renewed escalation in trade tensions, with key industries—from energy and metals to automotive and technology—facing heightened cost pressures. Market participants should watch for potential retaliatory actions from China, as well as broader shifts in supply chain dynamics.
With the US trade policy review set to conclude in April, investors will be looking for clarity on the administration’s long-term trade strategy. Until then, heightened uncertainty and market volatility are expected to persist.