President Donald Trump has made no bones about his love of tariffs, repeatedly invoking them during the first month of his administration as a bargaining tactic to try and snag victories.
The president has argued that tariffs — duties tacked onto imports of foreign-made goods— can be a flexible tool to get what he wants. They can be used to reduce trade deficits, which occur when a nation imports more than it exports, push companies to invest in domestic manufacturing and achieve non-economic goals.
Tariffs are paid to the federal government by the companies responsible for importing the product. However, consumers often end up paying higher prices for the same goods after tariffs kick in. Many companies simply can’t afford to absorb the additional cost of the fees, so they push the price along to their customers.
Here’s what Trump has put on the table — and what you need to know.
Universal threats
Although the president has primarily targeted blocs of nations or individual countries with his threats, some of his most potentially damaging tariffs are those that would affect just about every country. The U.S. imported more than $3.26 trillion in goods in 2024, according to U.S. Census Bureau data.
During his presidential campaign, Trump proposed universal tariffs of between 10% and 20% on imports from more than 190 countries, which could have major implications for the U.S. economy. Although Trump has delayed acting on that idea, saying earlier this month that “we’re not ready yet,” Treasury Secretary Scott Bessent is pushing to begin with growing universal tariffs that would start at 2.5%.
While speaking with reporters on Tuesday, Trump said he would issue tariffs “in the neighborhood of 25%” on imported vehicles, semiconductors, and pharmaceutical imports in April. Much is still unknown about those threats, including how they will interact with a free trade agreement with Canada and Mexico.
According to the Bureau of Economic Analysis, the majority of passenger cars the U.S. imported last year came from Mexico (48,704), followed by Japan (39,933), South Korea (37,385), Canada (27,675), and Germany (25,352). Malaysia and Singapore are expected to be hard-hit by the tariffs on semiconductors, while China and India may be slammed by the tariffs on pharmaceuticals.
Trump has also said that the U.S. would expand existing tariffs on steel and aluminum to 25%, likely raising prices on everything from canned soup to folding chairs. That somewhat mimics Trump’s 2018 trade actions, which sparked a trade war with China and angered several other nations.
According to the Tax Foundation’s estimates, the expanded tariffs will likely slash 17,000 full-time jobs and have a minor negative effect on gross domestic product (GDP). The duties are scheduled to take effect on March 12.
Last week, Trump asked his economic advisors to draft a plan to issue “fair and reciprocal” tariffs on the U.S.’s major trade partners; those duties could be implemented as soon as April. Commerce Secretary Howard Lutnick, who was confirmed by the Senate on Tuesday, has testified his belief that “we can use tariffs to create reciprocity, fairness and respect.”
Mexico, Canada, China
Soon after he took office, Trump threatened the U.S.’s top trade partners — Mexico, Canada, and China, in that order — with tariffs, citing national security risks caused by illegal immigration and fentanyl.
Mexico and Canada, which were each facing 25% tariffs, managed to reach agreements with the Trump administration to stave off the implementation of the president’s threats. That also meant they didn’t have to follow through with their retaliatory measures. Canada had announced 25% tariffs on $20.4 billion worth of goods, with additional tariffs set to take effect further down the road, while Mexico had prepared a series of retaliatory measures.
Trump’s tariffs are set to come into effect during the first week of March, likely raising prices on goods like avocados and cars. The duties directed at Canada included a carveout for energy products, which will be taxed at 10%, in an effort to keep gas prices more manageable.
Duties of 10% were added to Chinese imports earlier this month after talks with Beijing failed. In response, the nation hit back with its own tariffs, export controls related to critical minerals, and a series of targeted actions at companies.
Chinese regulators are investigating Google and Nvidia and planning potential inquiries into Apple and Intel. China’s Commerce Ministry has opened the door to place sanctions on Illumina and PVH Corp., which owns Calvin Klein and Tommy Hilfiger.
According to the Tax Foundation, Trump’s proposed tariffs on Mexico, Canada, and China are projected to shrink economic output by 0.4% and increase taxes by $1.2 trillion between 2025 and 2034. That comes out to an average tax increase of more than $830 per household this year.
All the rest
Trump has told the BRICS coalition — Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates — they would face 100% tariffs if they try to “replace the mighty U.S. Dollar.” He also leveraged tariffs to push a meeting with Russian President Vladimir Putin to put an end to the Russia-Ukraine War.
In December, he warned the 27-member European Union that he would issue tariffs to close trade deficits unless the nations bought more oil. Earlier this month, the president said that tariffs could come “pretty soon” and will “definitely happen with the European Union.”
Beyond trade disputes, Trump has suggested using tariffs to advance territorial goals. He’s floated the economic penalties as tools to force both a U.S. acquisition of the Panama Canal, amid concerns over Chinese influence, and his proposed purchase of Greenland from Denmark.