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Businesses trading with key global partners will face an uneven landscape of responses to the announced tariffs.

Update: On February 10, 2025, the Trump administration issued a proclamation reinstating a 25% ad valorem tariff on steel imports and increasing tariffs on aluminum imports to 25%, as well as ending all beneficial arrangements made with Argentina, Australia, Brazil, Canada, Mexico, South Korea, EU countries, Japan, Ukraine, and the UK, effective March 12, 2025. The proclamation terminates the steel and aluminum product exclusion process and adjusts tariffs on derivative steel articles.

The Trump administration announced new tariffs on imports from Canada, Mexico, and China on February 1, 2025, and has threatened additional tariffs on the EU and Colombia. This new US posture on global trade with key countries will significantly shift the global trade landscape. On February 3, Canada, Mexico, and the US announced a one-month pause of the tariffs to allow further negotiations.

In this post, we outline the current announced or anticipated tariffs and the responses from trading partners, as of February 4, 2025.

Canada: A Reciprocal Response

The Trump administration imposed an executive order introducing an additional 25% tariff on “all articles” imported from Canada, with a reduced 10% tariff on energy or energy resources. In response, Canada has pledged a 25% tariff against CA$155 billion worth of US goods, to be implemented in two stages.

On February 2, 2025, Canada responded with a pledge to impose immediate tariffs on approximately US$30 billion worth of US products, including beer, wine, bourbon, fruits, vegetables, perfume, clothing, shoes, household appliances, furniture, sports equipment, lumber, plastics, and pulp and paper products. A second round of tariffs, effective February 21, 2025, will target an additional US$125 billion worth of US products, subject to public consultation. This second round is likely to include passenger vehicles, trucks, electric vehicles, steel, aluminum, aerospace products, beef, pork, dairy, and recreational vehicles and boats.

Additionally, the Canadian government is considering measures to restrict the export of sensitive Canadian goods to the United States that the US relies on, such as hydroelectric power from Quebec, through export quotas or duties.

On February 3, the US and Canada announced a one-month pause of the tariffs to allow further negotiations.

Mexico: A Pause for Negotiation

The Trump administration imposed a 25% tariff on “all articles that are products of Mexico.” Initially, Mexico announced a “Plan B,” which included unspecified tariff and non-tariff measures. However, on February 3, 2025, the US and Mexico agreed to a one-month pause on the tariffs to allow for further negotiations, providing a temporary reprieve and an opportunity for diplomatic resolution.

China: Legal and Countermeasures

The Trump administration imposed an additional 10% tariff on “all articles that are products of the PRC.” The administration has not yet indicated whether the duties will apply to goods that originate in Hong Kong or Macau.

In response, China announced its intention to file a lawsuit with the World Trade Organization and enact “necessary countermeasures.” This move signals a potential escalation in trade tensions between the two economic giants.

On February 4, China announced more specific measures, including:

  • Tariffs on select US imports, including a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery, and large-engine cars imported from the US
  • New/enhanced export controls on several elements/minerals critical to the production of modern high-tech products
  • An antitrust investigation into Google and other trade measures

European Union: Anticipated Tariffs

While tariffs on the EU have not yet been announced, President Trump stated on February 1, 2025, that he would “absolutely” impose tariffs on the EU. In anticipation, the EU Commissioner for the Economy confirmed that Europe would respond proportionately to any US tariffs, indicating a readiness to defend its economic interests.

Colombia: A Resolved Conflict

On January 26, 2025, President Trump threatened to impose 25% tariffs and economic sanctions on Colombia after the Colombian government refused to allow two military planes with migrants to land in the country. However, the conflict was resolved on the same day, avoiding the imposition of tariffs. The Colombian president had indicated a willingness to retaliate with tariffs on US goods, if pushed.

Conclusion

The evolving tariff and trade policies under the Trump administration present both challenges and opportunities for international trade. Businesses and stakeholders must stay informed and agile to navigate these changes effectively. As negotiations and responses continue to unfold, the global trade community will be closely watching for further developments and potential resolutions.