U.S. Trade Policy

Sweeping tariff policy heightens uncertainty. The recent introduction of the “Liberation Day tariffs” marks the most significant shift in U.S. trade policy in more than a century, propelling the net effective tariff rate from about 2.5 percent last year to well above that for most countries. A 10 percent blanket tariff now covers nearly all imports. Initially, 90 countries faced higher levies — some as steep as 60 percent — until President Trump announced a 90-day pause on the implementation of these tariff s as of April 9, 2025. China, however, was excluded from this reprieve and now faces in excess of 100 percent duty after imposing its own 84 percent tariff on U.S. goods. Meanwhile, sector-specific tariff s of 25 percent remain on steel, aluminum and foreign automobiles, and although copper, semiconductors, pharmaceuticals and energy products are currently exempt, the White House has signaled that these exclusions — especially those for pharmaceuticals — may soon expire.