Despite economic concerns and stock market instability, US President Donald Trump continues his tariff policies against key trade partners. Tariffs on steel and aluminium took effect on 12 March, targeting major suppliers such as Mexico, Canada, and China, which collectively account for over 40% of US imports.
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In 2024, US imports from these three nations totalled $1.4 trillion. Other key trading partners include Germany, Japan, and Vietnam, which exported goods worth $445 billion to the US last year. Mexico overtook China as the leading exporter to the US in 2023, partly due to Trump's previous tariffs on Chinese goods, rising wages in China, and supply chain disruptions. Many firms have since moved production to Mexico and Vietnam.
The US has long-standing trade deficits, particularly with China, Mexico, and Vietnam. In 2024, the US trade deficit with China was $295 billion, with Mexico $172 billion, and with Vietnam $123 billion. Key imports include cars, computers, and smartphones, primarily from Mexico, China, and Vietnam. The US also imports crude oil, with Canada supplying nearly 60%. Other significant imports include medicines, with India, Ireland, and Switzerland among the main suppliers.
In response, the Trump administration plans to introduce further tariffs on car imports in April, potentially extending them to computers and smartphones. Tariffs on agricultural products have also been announced.
However, the US is not just reliant on imports—it has trade surpluses in agricultural goods like soybeans and pork, as well as in fossil fuels, particularly refined oil and natural gas. China has already imposed retaliatory tariffs on US agricultural exports, highlighting the risks of continued trade tensions.
Source: www.nzz.ch