The current tariff war represents an escalation of the earlier trade tensions that emerged during the first term of U.S. President Donald Trump under the “America First” trade policy.

Initially the trade conflict focused on targeted measures against China, the situation has since broadened in scope, extending to key global economies and allies, including the European Union. In April 2025, the United States implemented a sweeping “reciprocal tariff” policy, introducing a baseline 10 percent tariff on all imports, alongside significantly higher rates targeted at specific countries, most notably imposing a punitive 145 percent tariff on Chinese goods. The policy is framed by the U.S. government as a necessary to address border and immigration issues with Canada and Mexico, improve the longstanding perceived trade imbalances and unfair practices, particularly focusing on intellectual property concerns, currency manipulation, and state-sponsored industrial subsidies by China[1] Click to Read More