Data & financial journalist covering global economics and policy
The U.S. reported major trade deficits in February 2025 with China, the EU, and Mexico—just as President Trump’s latest round of ‘reciprocal’ tariffs took effect. Here’s a breakdown of who’s facing the steepest penalties, and why some key allies like Canada and Mexico are exempt.
On April 2, dubbed “Liberation Day” by President Trump, the U.S. will impose new “reciprocal” tariffs on imports, escalating trade tensions with key partners.
While countries like China, Mexico, and Canada are already expected to be hit hardest, many European and Asian economies will likely see a huge impact, prompting global warnings of retaliation, trade wars and a global economic slowdown.
Canada hits back with tariffs as Trump moves forward with 25% tariff on two of its largest trading partners-Canada and Mexico.
As China retaliates with a 15% tariff on U.S. coal, India remains the top buyer, highlighting shifting global trade dynamics amid ongoing U.S.-China tensions.