There have been several notable changes and developments regarding President Donald Trump’s tariff and trade policies since his April 2 “Liberation Day” announcement. Here are some key updates over the past few weeks, as well as what to look out for moving forward as the Trump administration undertakes sweeping trade negotiations.

Reciprocal Tariffs

On April 2, Trump officially invoked a national emergency under the International Emergency Economic Powers Act, citing persistent U.S. trade deficits and associated economic impacts as justification to authorize new tariffs intended to address non-reciprocal trade practices and protect critical supply chains.

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The president’s order implements a 10% baseline tariff on imports from all countries, effective April 5. An individualized reciprocal tariff above 10% will apply to countries with which the U.S. has the largest trade deficits by the White House’s estimates, effective April 9.

Of note, this individualized rate was paused for 90 days on April 10 (except for China), but the baseline 10% remains in effect. Meanwhile, exemptions to the president’s reciprocal tariff regime apply to:

  • Items exempted under 50 USC 1702(b) of IEEPA.
  • Goods already subject to Section 232 tariffs (e.g., steel, autos).
  • Copper, pharmaceuticals, semiconductors and lumber.
  • Future Section 232 items.
  • Bullion.
  • Certain energy and critical minerals not domestically available.
  • Specific electronic goods, such as smartphones (exemption issued on April 11).

China Rate Rising

While he has temporarily backed off the country-specific reciprocal tariff rate for other countries, Trump has escalated his tariff regime against China, with the Chinese government responding in kind. After China responded to the original 34% reciprocal tariff with a matching 34% levy on U.S. goods, the Trump administration hiked the reciprocal tariff duty to 145%. This includes the 20% tariff the president imposed on goods coming from China due to a dispute over fentanyl smuggling.

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Beyond tariffs, both sides have undertaken retaliatory efforts as the trade dispute between the Trump administration and Beijing continues to intensify. The president also signed an order eliminating duty-free de minimis treatment for low-value imports from China and Hong Kong, effective May 2. The U.S. is also reportedly weighing the removal of roughly 300 Chinese companies that trade on the U.S. stock exchanges.

For its part, China increased its tariffs on U.S. goods to 125% on April 11 and has halted exports of certain critical rare earth metals and directed Chinese airlines to halt Boeing orders.

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Tariffs On Goods From Canada And Mexico

With respect to Canada and Mexico, existing fentanyl and migration-related IEEPA tariffs remain in effect, and goods compliant with the United States-Mexico-Canada Agreement of 2020 are exempt.

  • Non-USMCA goods face a 25% or 10% tariff, depending on classification.
  • If the current orders are terminated, non-USMCA goods would face a 12% tariff while USMCA goods remain preferentially treated, according to the White House.

Negotiations Continue

The Trump administration is actively engaged in trade negotiations with numerous countries as a part of its reciprocal tariff regime. So far, the U.S. has reportedly initiated discussions with over 75 countries, and Treasury Secretary Scott Bessent is leading efforts to negotiate tailored trade agreements during a 90-day pause on new tariffs.

The administration’s position in these negotiations has focused on the need to eliminate trade barriers, address non-tariff measures and reduce the U.S. trade deficit. To that end, announcements on dropping the country-specific tariff rates could emerge in coming weeks – however, significant uncertainty remains surrounding the baseline 10% levy, as well as heightened trade tensions with China, Canada and Mexico.

Court Challenges

Meanwhile, multiple lawsuits have been filed challenging the administration’s reliance on the emergency declaration using IEEPA. Plaintiffs include California Gov. Gavin Newsom, members of the Blackfeet Nation in Montana, the New Civil Liberties Alliance in Florida and the Liberty Justice Center in the U.S. Court of International Trade.