Tariffs Update!

The Trump Administration announced a 10% tariff on most foreign imports, along with higher "reciprocal" rates for other exporters to the U.S. These tariffs were to be effective on April 9, and are based on the average tariff and nontariff barriers other nations impose on U.S. goods. The reciprocal tariffs would have affected many nations, including some of the country's largest trading partners. Imports from the EU, Japan, and South Korea would face tariffs of 20% or higher. Vietnamese imports would be subject to a 46% tariff, while Taiwanese imports would face a 32% tariff.  However, in the afternoon of April 9, President Trump increased tariffs on China to 125 percent and implemented a 90-day pause on reciprocal tariffs noted above against all other trading partners, causing a major surge in the markets.

The Republican-led Senate has issued a rare rebuke of President Trump and his trade agenda. Senators voted 51-48 to reject the national emergency Trump declared earlier this year to justify his plan to impose 25 percent tariffs on Canadian imports. Four Republicans (Sens. Collins (ME), McConnell (KY), Murkowski (AK), and Paul (KY)) joined Democrats to pass the joint resolution (S J Res 37), signaling concern within the party. The House is not expected to pass similar legislation.