Trump's tariffs - what's happened so far and what happens next

Several of U.S. President Donald Trump's long-threatened trade tariffs are due to go into effect on April 2, in what Trump is calling 'Liberation Day'. It risks plunging the world economy into greater uncertainty as global trade wars heat up.

Tariffs form a central part of Trump's political philosophy. He imposed them in his first term and was quick to announce a raft of new measures following his inauguration on January 20.

"Tariffs are not just about protecting American jobs, they're about protecting the soul of our country," Trump told Congress. "Tariffs are about making America rich again and making America great again – and it's happening."

But what tariffs has he proposed, which of them has he enacted – and what might happen next?

Canada and Mexico

On day 2 of his presidency Trump announced plans for a 25 percent tax on imports from Canada and Mexico, which he claimed was a response to the flow of the illegal drug fentanyl, as well as migrants from both countries.

But the move has proved difficult to implement. The tariffs came into effect on February 3, only to be postponed the next day for a month.

When they were reintroduced on March 4, Canada retaliated – imposing $20 billion of tariffs on American goods. Two days later, Trump postponed them again until April.

Cars

Car imports are another target in a bid to boost domestic production and sales.

A 25 percent tariff on all cars imported into the U.S. was announced on February 12, to come into effect in March – but that was later delayed until April 2, with a tax on car parts postponed until May. 

The European Union

A 25 percent tax on steel and aluminum imports was announced in February and went into effect on March 12 – prompting European Commission President Ursula von der Leyen to announce $28 billion of counter-tariffs on U.S. goods.

"Tariffs are taxes – they're bad for business and worse for consumers," Von der Leyen told reporters. "They're disrupting supply chains. Jobs are disrupted and prices up – nobody needs that."

The EU counter-tariffs have since been postponed, to give time for further negotiations – but ahead of Trump's Liberation Day, Von der Leyen remained firm.  

"We do not necessarily want to retaliate, but if it is necessary, we have a strong plan to retaliate and we will use it," she told EU lawmakers. "Europe holds a lot of cards, from trade to technology to the size of our market."

China 

Chinese imports are another major Trump target. On February 1 the U.S. imposed a 10 percent tax on all Chinese goods, accusing Beijing of allowing fentanyl exports to the U.S. market.

China retaliated with $14 billion of its own tariffs on U.S. liquefied natural gas and agricultural equipment. In March, the U.S. placed an additional 10 percent tax on Chinese imports – prompting further Beijing countermeasures, this time involving U.S. food and agricultural products.

China's Minister of Commerce has made clear that the country will continue to respond to any further impositions.

"If the U.S. continues on this wrong path, then we will fight to the end," Wang Wentao said. "China has always believed that mutual benefit and win-win cooperation are the essence of China-US economic ties, and there is no question of who always suffers and who always takes advantage." 

What happens next?

From April 2, U.S. tariffs will affect dozens of countries around the world, including Canada and Mexico, and much of Europe, along with Japan, South Korea and China. 

The new tariffs coming in will include a 25 percent levy on all car imports along with all goods from Mexico and Canada. They will join existing tariffs on steel and aluminum imports, as well as Chinese imports.

Further taxes on car parts, timber, semiconductors and pharmaceuticals could also follow.

Now the world is waiting to see what further retaliation the U.S. may face, while Trump has warned that any such countermeasures will be met with even higher tariffs.

It seems the global trade wars are only just beginning.