The tariff timeline: How Trump 2.0 policy is reshaping global trade

When Donald Trump announced his bid for reelection in November 2022, the 45th President of the United States relied on promises of sweeping reforms to win the American people over. Among these promised reforms was the idea of increasing tariffs.

That journey culminated in “Liberation Day” on 2 April, when Trump, now the 47th president, announced a sweeping range of tariffs on goods his country imports from across the world. India, a significant contributor to the US' trade deficit, is also a major target, and faces a 26% tariff in a week's time. (More on that here.)

A tariff is a tax imposed on goods and services imported from another country. The primary purpose of tariffs is to encourage people to buy locally and help the domestic economy.

Also read: What colour is your dal? If it’s yellow, the US wants a free pass.

Here is a timeline of the second Trump administration’s tariff strategy as it unfolds:

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20 January: Trump takes office

In his inaugural address, Trump vowed to impose tariffs and taxes on other countries to revamp US trade and make Americans rich.

"Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump said, adding, “For this purpose, we are establishing the External Revenue Service to collect all tariffs, duties and revenues.”

Also read: India to drop ‘Google tax’ from 1 April amid US tariff threats

Meanwhile, the Indian government was preparing to get into a tricky trade situation with the US. Read this report on how India wanted to engage with Washington to ease market access to US products in the country.

1-4 February: First round of tariffs

The US President signed an executive order imposing tariffs on goods from Mexico, Canada, and China. Imports from China faced a 10% tariff, while goods from Mexico and Canada were hit with a 25% tariff.

Also read: Trump's tariff war: How India might avert damage

In response, all three countries announced retaliatory measures. On 3 February, Trump paused the tariff decision for Mexico and Canada for 30 days after both nations pledged to address concerns over drug trafficking and border security.

Also read: India was first-time lucky with Trump's tariffs. But it doesn't want to take a chance

The next day, a 10% tariff on Chinese imports to the US took effect. In retaliation, China imposed new duties on US goods and launched an anti-monopoly investigation into Google.

Also read: Mint Primer | Are Trump’s tariffs on China and others a boon or bane for India?

10 February: Steel tariffs

President Trump announced plans to impose 25% tariffs on all steel and aluminium imports starting 10 February, fulfilling a campaign pledge to overhaul the trade system. “Very simple, they charge us, we charge them,” he added.

Also read: US tariffs, EV slowdown pose global hurdles for Indian auto

Indian steelmakers, already struggling with rising imports and falling domestic prices, were facing further disruption after the US imposed a 25% tariff on steel and aluminium imports.

Also read: Indian steelmakers, already reeling under lower prices, brace for impact of Trump's 25% tariff

13 February: Reciprocal tariffs and Modi’s US visit

Donald Trump announced plans for reciprocal tariffs, aiming to raise US tariffs to match those imposed by trading partners “for purposes of fairness.”

Also read: In charts: What reciprocal tariff threat could mean for Indian goods

Meanwhile, Prime Minister Narendra Modi was on a US visit, committing to increasing bilateral trade and signing a new trade deal.

Also read: Mint Primer | Will PM’s visit help India dodge Trump’s tariffs?

He signalled that countries like India could also face higher tariffs, in addition to China, Canada, and Mexico. Additionally, he confirmed plans to impose a 25% tariff on European nations.

Also read: What is at stake for India amid Trump's tariff war on steel and aluminium, in six charts

25 February: Potential copper tariffs
Trump directed the Commerce Department to assess whether tariffs on imported copper are necessary to protect national security. He cited copper’s critical role in defense, infrastructure, and emerging technologies, emphasizing the need for domestic production security.

India and the UK resumed free trade talks after a year, aiming to counter rising protectionism. Commerce minister Piyush Goyal said the FTA could triple trade in a decade. Negotiations also covered a bilateral investment treaty and a double taxation avoidance agreement (DTAA) to ensure regulatory stability.

Also read: Trump's Venezuelan oil tariff threat to have little impact on India, experts say

1 March: Lumber and timber tariff review
President Trump instructed the Commerce Department to evaluate whether tariffs on lumber and timber imports were needed. He argued that these materials are essential to the construction industry and military supply chains, warranting potential trade restrictions.

4 March: Tariffs take effect, global retaliation begins
Trade tensions escalated as the US imposed steep tariffs: 25% on Canadian and Mexican imports and an additional 10% on Chinese goods. Hopes for a last-minute delay were dashed as the tariffs took effect at 12:01 ET.

Canada retaliated with matching levies, calling the move “unjustified,” while China imposed its own tariffs, took the dispute to the WTO, and restricted US businesses. Despite the turmoil, some Indian businesses see potential opportunities.

5 March: Temporary exemption for Mexico and Canada

Trump granted a one-month exemption from tariffs on goods imported from Mexico and Canada. The move was a relief for US automakers, who rely heavily on supply chains from these countries.

India prioritized a bilateral trade agreement (BTA) with the US over discussions on reciprocal tariffs. During a high-level visit to Washington from 4-8 March, Indian delegates focused on shaping the deal, which was targeted for completion by fall 2025.

Also read: US should be very worried about unintended consequences of its tariff actions: Uday Kotak

10 March: China strikes back
Following the US tariff hike to 20%, China imposed an additional 15% tariff on US products, including chicken, pork, soybeans, and beef. However, the Chinese commerce ministry stated that goods already in transit would be exempt from retaliatory tariffs until 12 April.

Also read: Mint Primer: Can a ‘zero-for-zero’ approach thwart reciprocal tariffs?

12 March: Steel and aluminium tariffs rise

Trump increased tariffs on all steel and aluminium imports to 25%. In response, the European Union announced counter-tariffs on a range of US products, including steel, aluminium goods, textiles, home appliances, motorcycles, bourbon, peanut butter, and jeans.

Also read: Trump reciprocal tariffs: Here’s the best-case scenario for India

13 March: Trump threatens 200% wine tariffs

The President warned he would impose a 200% tariff on European wine, champagne, and spirits if the EU moved forward with a 50% tariff on American whiskey. The threat escalated tensions between the US and Europe over trade policies.

Also read: Trump's tariffs cloud India's March exports

24 March: Tariffs on Venezuelan oil and gas

Trump announced a 25% tariff on countries purchasing oil or gas from Venezuela, effective 2 April. The decision is expected to hit China particularly hard, as it imported 68% of Venezuela’s oil in 2023, according to the US Energy Information Administration.

Also read: Why India’s electronics sector is least at risk from Trump's reciprocal tariff scrutiny

26 March: Auto tariffs to boost US manufacturing

Trump introduced a 25% tariff on auto imports, aiming to encourage domestic manufacturing. However, automakers raised concerns, warning that the move could disrupt global supply chains and increase vehicle prices.

Also read: Mint Explainer: Have India-US trade talks blunted Trump’s threat of reciprocal tariffs?

2 April: India hit with 26% partially reciprocal tariffs

As Trump unleashed his global tariff war from the White House, India found itself grappling with a new regime that stopped short of full reciprocity but still posed significant trade barriers.

With Trump deciding to charge half of the tariffs a country imposes on American imports, Indian exports to the US face a 26% tariff. This is based on Trump’s assertion that India levies a 52% cumulative tariff on US goods. The US is India’s largest export market.

Also read: Trump’s tariff strike: India hit with 26% duty as trade war escalates

9 April: A 90-day pause and China, EU hit back

In a dramatic reversal, Donald Trump on 9 April paused his sweeping tariffs on most US trading partners for 90 days—just hours after they took effect—but simultaneously hiked tariffs on China to 125%, up from 104%. Blasting Beijing for its “lack of respect” toward global markets, Trump’s move further deepens tensions with China even as he signals flexibility elsewhere.

Also read: What Trump’s tariff tantrums mean for investors

This came after China and the EU hit back at the US. China imposed an 84% tariff on US goods from 10 April, while the EU approved retaliatory duties on $23 billion worth of US imports. 

This is a developing story, and this piece will be updated as the story further develops.