Category: BUSINESS

US Tariffs Update: EU postpones countermeasures by 90 days

 

The tariff between the US and China remains unsettled as US President Donald Trump on Wednesday increased the tariff on Chinese products by 125%. Within a few hours, China retaliated and implemented 84% tariff on imports from the US.

China’s Foreign Ministry said that this US strategy ‘will not win the support of the people and will finally fail. China made it clear that it does not want to fight, but will not be afraid of America’s threats.  However, the Chinese Ministry of Commerce said that the door is open for talks and is expected to find a solution from the US on the basis of ‘mutual honor’ and ‘Win-Win Cooperation’.

Meanwhile, Trump has given 90 days exemption in tariffs for 75 countries, including India but China has been excluded from it. Trump hoped that there would be a good agreement soon.

Talking to reporters at the White House, Trump praised Chinese President Xi Jinping and called him ‘one of the smartest people in the world’ and said, ‘We will make a good compromise.’ He indicated that he is ready for a direct conversation with Xi and said, “There will be a time when we will get a phone call from China and everything will move forward rapidly.”

EU postpones countermeasures

European Commission Chairman Ursula von Der Leyen announced that the European Union (EU) would give a break of 90 days on imposing anti -anti -counter tariffs against the US. The decision has come after tariff pose announced by US President Donald Trump, in which he has reduced the fee on other countries except China to 10%.

 

Brazil’s Embraer to suffer from US tariffs as costs of jets ‘fly high’

The global economy is in a state of flux following the introduction of new tariffs by U.S. President Donald Trump and the jitters can be seen in Brazilian jet maker Embraer, which has voiced concerns citing costs of jets to be higher and even flying high along with their jets.

The tariffs, which are expected to set a minimum of 10% duties for all U.S. imports from countries like Brazil are predicted to add complexity and costs to Embraer’s business and its customers in the United States. The aerospace sector, which has operated without tariffs on parts or finished products for decades, is expected to be significantly impacted by these tariffs, according to a statement released by Embraer.

The introduction of these tariffs has not only affected Embraer but has also led to a sharp sell-off on Wall Street, marking the sharpest since the COVID-19 crisis. Asian stocks slumped as fears of a global economic slowdown grew. Japan ’s Nikkei 225 dropped 2.6%, while South Korea ’s Kospi slipped 0.8%. Australia’s S&P/ASX 200 sank 1.9%, and Chinese markets were closed for a public holiday.

The sweeping and aggressive implementation of these tariffs by Trump has taken even the pessimists by surprise. Mary Ann Bartels of Sanctuary Wealth called it the “worst-case scenario.”

Otherwise, the longest-running trade dispute was probably between the US Trade Representative (USTR), on behalf of Boeing, against “illegal” subsidies used by Airbus to launch every one of its airplane programs from inception in 1970 with the A300.

These subsidies came from the French and German governments, local taxing jurisdictions, and other entities. Called launch aid, the governments usually advance Airbus hundreds of millions of dollars for each airplane program.

Chronology of US Trade Tariffs Unveiled by Trump Admn Since January 2025

As the global countdown begins toward the April 9 deadline for implementation of sweeping U.S. tariffs, diplomatic activity is intensifying across Asia and Latin America, with allies and trade partners scrambling to negotiate exemptions or delays.
President Donald Trump’s April 2 executive order imposing “reciprocal tariffs” of up to 50% on nearly 185 countries has already triggered currency swings, supply chain concerns, and a flurry of diplomatic outreach.
With less than a week left, countries like Vietnam, Thailand, and Indonesia are pursuing urgent talks with Washington — testing the limits of Trump’s protectionist playbook and potentially reshaping the future of U.S. trade alliances.

Below is a chronological summary of several announcements made by Trump since January 2025 after taking office on Jan 20, 2025:​

January 2025:

  • January 22: The Trump Administration hints at potential tariffs on Russia, though specific details were not provided.

  • January 26: Trump threatens with tariffs of 25% on all Colombian products but were subsequently rescinded.

  • January 27: The Trump Administration threatens tariffs on copper imports, pending further scrutiny. ​

  • January 30: Trump threatens a 100% tariff on all products from BRICS nations (Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, the United Arab Emirates, Russia, and South Africa) if they push for De-dollarization.

  • January 31: Scrutiny of of imposing tariffs was extended to integrated circuits and the oil and gas sector, with specifics to be determined. ​

February 2025:

  • February 1: Executive Orders 14193, 14194, and 14195 were issued by Trump, imposing tariffs on Canada, Mexico, and China, respectively.

  • February 3: Executive Orders 14197 and 14198 were signed, further detailing tariffs on Canada and Mexico.

  • February 10: The administration announced a 25% tariff on steel imports, effective March 12, revoking existing exemptions. ​

  • February 11: A 25% tariff on aluminum imports was declared, also effective March 12, with previous exemptions revoked. ​

  • February 13: A Presidential Memorandum ordered the development of a “Fair and Reciprocal Plan” to address non-reciprocal trading arrangements. ​

  • February 14: President Trump indicated considerations for a 25% tariff on automobiles, potentially starting around April 2. ​

  • February 18: Trump threatens 25% tariffs on pharmaceuticals and semiconductors, with expectations of substantial increases over the course of the year.

  • February 21: The Trump Administration threatens tariffs on Austria, France, Spain, Turkey, and the United Kingdom, possibly renewing Section 301 investigations to address digital services taxes.

  • February 25: A Section 232 investigation into copper imports was initiated, with a report due by November 22, 2025. ​

  • February 26: A Section 232 investigation into timber, lumber, and derivative products was launched, with findings expected by November 26, 2025. ​

  • February 27: The Office of the U.S. Trade Representative publishes the 2025 Trade Policy Agenda, outlining the administration’s vision for trade.

March 2025:

  • March 2: President Trump announces a temporary allowance for U.S. imports from Mexico and Canada to continue enjoying the de minimis provision, pending further notification.

  • March 4: Tariffs on Canada and Mexico become effective, with Canada facing 10% on energy resources and 25% on all other products, and Mexico subjected to a 25% tariff on all products.

  • March 24: Trump signs an Executive Order imposing tariffs on countries importing Venezuelan oil.

April 2025:

  • April 2: President Trump announces sweeping “reciprocal tariffs” on 185 countries, with a baseline rate of 10% and a maximum of 50%, affecting both adversaries and key allies in Europe and Asia. China faces an additional 34% tariff, the European Union 20%, Japan 24%, India 27% and Vietnam 46%. These tariffs were set to take effect on Wednesday, April 9, 2025.

  • April 2: China announces retaliatory tariffs of 34% on all U.S. goods, effective April 10, 2025.
  • April 3: Global stock markets crash across Asia and other parts due to concerns over the escalating trade tensions.​

  • April 3: Goldman Sachs raises the probability of a U.S. recession from 35% to 45%, citing the potential impact of the tariffs on economic growth.

  • April 4: Bill Ackman, the billionaire investor urges for a 90-day suspension of the tariffs, warning of an “economic nuclear winter” if the tariffs were implemented as planned on April 9, 2025.

  • April 7: President Trump reiterates his resolve to the tariff strategy, describing the measures as “medicine” necessary to address trade imbalances, despite market crashing across Asia, Europe and even the Wall Street.

These actions reflect the administration’s resolve to go ahead with tariffs across various sectors and countries despite recession fears and market declines.

“Postpone Tariffs”: Wary Vietnam Appeals Trump to Delay Enforcement

Vietnam has formally requested that the United States delay enforcement of a sweeping 46% tariff on Vietnamese exports, just days before the measure is set to take effect on Wednesday, April 9, 2025.

In a bid to avert major disruptions to its export-driven economy, Hanoi has asked for a pause of at least 45 days while both sides pursue negotiations, according to Vietnamese officials. The request was delivered during a meeting on Sunday between Deputy Prime Minister Bui Thanh Son and U.S. Ambassador Marc Knapper in the Vietnamese capital.

The move comes after Vietnamese Communist Party chief To Lam was among the first world leaders to speak directly with President Donald Trump following his announcement last week of blanket “reciprocal tariffs” on over 180 countries. Vietnam’s rate—one of the highest—has alarmed policymakers and business leaders across the country.

In a letter dated April 5, reportedly from Lam to Trump and circulating online, the Vietnamese leader urged the U.S. to postpone tariff implementation to allow time for diplomatic resolution. The New York Times cited the letter, though its authenticity has not been independently verified.

Meanwhile, Deputy PM Ho Duc Phoc, appointed as special envoy to the U.S., is leading a delegation to Washington and Cuba from April 6–16. Vietnamese officials say Phoc will engage in high-level talks aimed at securing a temporary delay of one to three months. “The decision to impose reciprocal tariffs is inconsistent with the current state of bilateral trade relations,” Son told the U.S. ambassador, emphasizing that the move undermines the spirit of the two countries’ comprehensive strategic partnership.

Vietnam has seen rapid economic growth in recent years, in part by capitalizing on shifting global supply chains amid U.S.-China trade tensions. The new tariffs now pose a serious risk to key sectors including electronics, textiles, and agriculture.

Nissan Halts U.S. Orders for Mexico-Built Infiniti SUVs

Nissan has suspended all new U.S. orders for its Mexican-built Infiniti SUVs following the implementation of sweeping new U.S. auto tariffs, marking one of the first major manufacturer pullbacks triggered by President Donald Trump’s 25% levy on foreign-made cars and trucks.

In a statement Thursday, the Japanese automaker confirmed it will no longer accept U.S. orders for the Infiniti QX50 and QX55 SUVs, both produced at the COMPAS plant in Aguascalientes, Mexico — a joint venture with Mercedes-Benz. “Production will continue for other markets,” a Nissan spokesperson said, citing Canada and the Middle East, but no new U.S. orders will be taken for the two models.

The move underscores the immediate disruption caused by Trump’s tariffs, which went into effect at midnight Thursday. Nissan is particularly exposed, exporting more vehicles from Mexico to the U.S. than any other Japanese automaker.

At the same time, Nissan reversed plans to scale down production at its U.S. plant in Smyrna, Tennessee, saying it will maintain two production shifts for its Rogue SUV despite an earlier plan to cut one shift this month.

The automaker, already grappling with an aging lineup and limited hybrid offerings, has slashed profit forecasts three times in the past year and recently saw its credit rating fall to junk status. The new tariffs may further squeeze margins on its North American operations. “This is a significant blow to Nissan’s U.S. strategy and could have ripple effects across its North American supply chain,” said one industry analyst.

The COMPAS plant, which also produces the Mercedes-Benz GLB SUV, may face broader operational questions if the U.S. tariff regime persists.

Newly appointed Nissan CEO Ivan Espinosa, a Mexican national, has vowed to streamline vehicle development and restore profitability — but the U.S. tariff shock now adds a new layer of urgency.

PM Ishiba Urges Calm, Vows Support for Kaishas as US Tariffs Hit Japan

As the impact of U.S. tariffs begins to ripple through the Japanese economy, Prime Minister Shigeru Ishiba has pledged to push back against the levies while rolling out emergency support for affected industries — but warned local businesses that relief may take time.

Speaking before parliament on Monday, Ishiba said Tokyo will continue urging U.S. President Donald Trump to reconsider his decision to impose sweeping tariffs on Japanese imports, including a 25% duty on automobiles and a 24% tariff on other goods.

“We will ask the United States to reverse these measures,” Ishiba told lawmakers. “But this won’t be resolved overnight. In the meantime, the government must act swiftly to protect jobs and stabilize our local economy.”

The announcement follows a steep 9% plunge in the Nikkei 225 index early Monday, driven by fears of a global recession. Economic analysts have warned that the new tariffs could shave nearly 0.8% off Japan’s GDP, with major exporters and local manufacturers likely to feel the pressure first.

Ishiba, who returned Sunday night from a late meeting with his top economic team, has instructed ministers to explore funding assistance for affected companies, particularly small and mid-sized businesses in Tokyo, Nagoya, Osaka, and other industrial hubs.

“We will not stand by and watch our communities suffer,” Ishiba said. “Our response will include targeted financial aid, workforce protections, and emergency trade measures where necessary.”

Residents in auto-producing regions such as Aichi Prefecture and Tochigi have expressed concern over potential job cuts and production slowdowns. Local government officials are expected to coordinate with national ministries to assess the impact and prepare assistance packages.

The Prime Minister also left the door open for a face-to-face meeting with President Trump in Washington, hinting that Tokyo may offer a cooperative economic package to restart talks.

“But any negotiation must be grounded in fairness and mutual respect,” Ishiba added. “Japan has done nothing to warrant such punitive trade actions.”

With tensions rising and markets jittery, local businesses and consumers alike are bracing for potential price increases and reduced exports. The national government is expected to announce initial relief measures later this week.

After China, EU Gears Up With $28 Billion Retaliatory Tariff Hit on US Goods

The European Union is poised to slap retaliatory tariffs on up to $28 billion (€25 billion) worth of U.S. imports within days, escalating trade tensions with Washington following sweeping new duties from President Donald Trump. Reuters reports the bloc will target a wide range of American products — including meat, cereals, wine, wood, clothing, chewing gum, dental floss, vacuum cleaners, and even toilet paper.

The move in response to Trump’s 25% tariffs on EU steel, aluminium, and vehicles, as well as 20% reciprocal tariffs taking effect Wednesday on nearly all other goods has made the long-time ally furious and frustrated.

The European Commission, which oversees the bloc’s trade policy, will unveil its proposed countermeasures to EU member states late Monday. The move comes as European Commission President Ursula von der Leyen blasted the U.S. levies as a “major blow to the world economy” but signaled openness to negotiations, saying the EU remains “always ready” to talk.

Trump’s latest tariff package hits approximately 70% of EU exports to the U.S., worth €532 billion ($585 billion) last year. Additional duties on copper, pharmaceuticals, semiconductors, and timber are reportedly still in the pipeline.

The EU response shows a vivid revival of hostilities that first erupted during Trump’s first term, when the U.S. imposed similar tariffs citing national security concerns under Section 232. At that time, the EU responded with duties on $3.4 billion in American exports, targeting iconic products like Harley-Davidson motorcycles, bourbon, and Levi’s jeans. That standoff was largely diffused under the Biden administration, with a temporary suspension of the tariffs in 2021, but the new wave under Trump’s second term is re-igniting economic tensions.

President Ursula von der Leyen also condemned the fresh duties as a “major blow to the world economy,” though the Commission has yet to formally announce its full response. “We are always ready to talk,” she added, hinting at a potential diplomatic track, even as the EU moves to finalize its hit list.

In 2024, EU exports to the United States totaled €532 billion ($585 billion), with top sectors including industrial machinery, pharmaceuticals, vehicles, and agricultural products. Roughly 70% of those exports now face some form of U.S. tariff under the new measures, with further duties on semiconductors, timber, and copper reportedly under consideration.

The 27-member EU trade ministers will meet Monday in Luxembourg for the first bloc-wide political discussion since Trump’s announcement to assess the damage and chart a coordinated response.

Brazil Braces For Boost in Exports As China’s Retaliatory Tariffs Hit US Soybeans

China’s latest retaliatory move in the deepening trade conflict with the United States has dealt a major blow to American farmers, with soybean exports at the epicenter. The new tariffs, unveiled Friday, include sweeping 34% duties on all U.S. imports, effectively pricing out a large swath of American agricultural products from the Chinese market.

Brazil, already the largest exporter of soybeans to China, is emerging as the biggest beneficiary. A strong harvest and competitive pricing have positioned Brazilian producers to take advantage of the void left by U.S. exporters.

Soybeans bore the brunt of the initial market reaction. Futures on the Chicago Board of Trade fell over 3% to $9.77 per bushel — the lowest level recorded this year. A Singapore-based grain trader said the scale of the new duties effectively blocks most U.S. agricultural exports to China. “At 34%, nothing is viable,” the trader said.

European traders echoed the concerns, with expectations that the European Union may also impose restrictions on U.S. soybean imports in retaliation for the broad tariffs Washington announced earlier in the week.

The developments come just weeks after earlier Chinese tariffs targeted $21 billion worth of U.S. farm products. Friday’s response adds further pressure on an already strained trade relationship, with analysts warning of long-term shifts in global supply chains.

“This is going to hurt U.S. exporters badly,” said Jack Scoville, vice president at Price Futures Group in Chicago. “We’ve antagonized nearly every major trading partner. Where do we expect our goods to go now?”

“Brazil is set to see record shipments in Q2,” said Carlos Mera, head of agricultural research at Rabobank. “They’re not the only ones — Argentina, Paraguay, and even Australia stand to benefit depending on the crop.”

Local soybean prices in Brazil and surrounding countries have already begun climbing. On Thursday, a day after U.S. tariff hikes were announced, Brazilian port premiums surged to over $1 per bushel above the Chicago benchmark.

“Despite strong harvests, we expect regional prices to stay elevated,” said Sol Arcidiacono, head of Latin American grain sales at HedgePoint Global Markets. “This trade war will likely push more South American farmers to increase production, especially in Brazil, where growth had started to plateau.”

China, long the top destination for American agricultural exports, has been scaling back purchases. U.S. farm exports to China fell to $29.25 billion in 2024, down from $42.8 billion in 2022 — a trend that analysts say could accelerate further under the current tariff regime.

In a further blow to U.S. agribusiness, Chinese authorities also cancelled documentation for certain imports from American suppliers on Friday, including sorghum from C&D (USA) Inc. and poultry products from Mountaire Farms and other U.S.-based firms, citing food safety issues.

Tariffs Shake Up U.S. and Canadian Farm Equipment Industry

A recent farm show in Regina, Canada witnessed many farmers hesitant to buy new equipment like tractors and harvesters, leave alone new-tech machinery. Apparent are worries about tariffs making already expensive machines even more costly, following US-China retaliatory measures.

Some of these machines, like combines, cost more than $800,000. If tariffs suddenly raise prices, farmers say it could hurt their budgets badly, reports Reuters after interviewing several farmers [resent at the farm show. Although Canada avoided some broad U.S. tariffs, it still faces extra charges on things like steel, aluminum, and cars that don’t meet trade rules under the U.S.-Mexico-Canada Agreement. Farmers aren’t sure if the new tariffs apply to farm equipment, and sorting it all out could take weeks.

In the meantime, farmers are holding off on purchases. Some equipment companies, like Case IH, have already laid off workers in the U.S. due to falling demand. Canadian farmers and equipment sellers say the uncertainty is making it risky to buy or sell anything right now.

Bill Prybylski, who leads a Saskatchewan farmers’ group, said many farmers are nervous about spending, even as they admire new equipment at shows.

Derek Molnar from rockpicker-maker Degelman Industries said manufacturers don’t know how the tariffs will affect them either. Since machines are often ordered months in advance, unexpected tariffs could mean big losses.

Manitoba farmer Gunter Jochum said he’s waiting to buy new equipment. Like many farmers, he buys machines from various countries, including the U.S., Germany, and Canada.

Kip Eideberg from the Association of Equipment Manufacturers said about 30% of U.S. farm equipment is sold abroad, with Canada as the top buyer. He warned that tariffs could raise prices, hurt jobs, and mess up the supply chain.

In Saskatchewan, Honey Bee’s general manager Jamie Pegg said they may cut back on production to avoid having too much unsold equipment.

Nancy Malone, who works with Canadian machinery dealers, said the confusion is hurting business. She’s asking the Canadian government not to add more tariffs on U.S. farm machinery, hoping to protect local dealers and farmers.

Jaguar Land Rover Stops US-Bound Shipments After Trump’s 25% Tariff on Vehicles

Jaguar Land Rover (JLR) has announced an immediate pause in shipments of its UK-manufactured vehicles to the United States, citing the need to reassess operations following President Donald Trump’s new 25% import tariff on cars and light trucks.

The British luxury carmaker, owned by India’s Tata Motors, confirmed the move on Saturday after a report by The Times revealed the temporary suspension. The halt is expected to last through April. “As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” JLR said in a statement.

The decision comes just days after the tariff took effect on April 3, sending shockwaves across global automotive supply chains.

The U.S. is JLR’s second-largest market after the EU, accounting for nearly a quarter of the company’s total sales. The automaker sells around 400,000 vehicles annually, including popular models such as the Range Rover Sport and Defender.

The impact of the tariff is expected to ripple across the UK auto industry, which employs over 200,000 people and counts the U.S. as a key export destination, according to the Society of Motor Manufacturers and Traders (SMMT).

The Times reported that JLR has sufficient inventory already in the U.S. to cushion short-term sales, as these vehicles will not be subject to the new tariffs.

Meanwhile, the British government is intensifying efforts to negotiate a trade deal with Washington amid rising concerns over the economic fallout from the escalating global tariff war.

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