Trump’s trade tantrum

A cargo ship seen near Yangshan Port in Shanghai, China, in this file photo. Trump says that countries have been ripping off the United States for decades. — The New York Times

US President Donald Trump has long accused America’s trading partners of undermining his country, claiming they have engaged in unfair trade practices to siphon off American wealth and boost their own economies.

His ire is directed not only at rivals like China but also at long-standing allies such as Canada and Europe. Complaints range from high tariffs on US products to persistent trade deficits.

The sweeping new tariffs on foreign imports Trump announced on Wednesday are aimed at rectifying these perceived injustices.

Trump’s administration argues that these measures will level the playing field, though critics claim they could disrupt global markets and strain diplomatic ties.

Some truth, and some exaggeration

Trump’s assertions contain elements of truth: the United States has traditionally been more open to free trade than many other nations, resulting in heavy reliance on imports for key goods such as semiconductors and pharmaceuticals.

Certain countries also maintain high trade barriers against American exports.

However, trade experts argue that Trump’s claims are often exaggerated or misleading.

He frequently cites high tariffs imposed on American goods – such as the EU’s tax on US cars and India’s levy on motorcycles – without acknowledging the equally steep duties America imposes on foreign products.

For instance, the United States maintains a 25% tariff on imported light trucks.

Furthermore, Trump’s broad approach lumps together countries with vastly different trade policies.

While Canada imposes some restrictions on US goods, its barriers pale in comparison to China’s extensive trade protections.

The cost of tariffs

Trump’s aggressive tariff policies are significantly increasing trade barriers, potentially beyond the levels imposed by other countries.

According to The New York Times, his administration’s trade measures have already more than tripled the estimated cost of tariffs paid by US importers compared to last year.

And that’s before the new reciprocal tariffs and a 25% auto levy take effect.

During his first term, Trump’s tariffs on metals, Chinese goods, and other imports doubled the overall US tariff rate within two years, according to Daniel Anthony, president of Trade Partnership Worldwide.

Despite concerns from economists, Trump has remained defiant, dubbing his new measures “Liberation Day”.

“They’re reciprocal – so whatever they charge us, we charge them.

“But we’re being nicer than they were,” Trump declared.

How US tariffs compare

America’s tariff rates are relatively low but not dramatically so.

According to data from the World Trade Organisation (WTO), the US had a trade-weighted average tariff rate of 2.2% in 2023.

In comparison, the European Union stood at 2.7%, Japan at 1.9%, Canada at 3.4%, China at 3%, and Switzerland at 1.7%.

While some developing countries have notably higher rates – India’s average is 12%, Mexico’s 3.9% and Vietnam’s 5.1% – the difference among wealthier nations is minimal.

“US tariff rates are somewhat lower than in other countries,” said Ed Gresser, vice-president at the Progressive Policy Institute.

“But compared to other rich nations, the gap isn’t significant.”

Industry-specific tariffs

Trump often highlights foreign tariffs on American products, such as India’s 50% tariff on motorcycles, 60% on automobiles, and 150% on alcoholic beverages.

Similarly, Canada’s dairy system imposes high tariffs on imports exceeding quota levels – 245% for cheese and 298% for butter.

White House press secretary Karoline Leavitt recently criticised the EU’s 50% dairy tariff and Japan’s staggering 700% tariff on US rice.

“This has put a lot of Americans out of business and out of work,” she said.

“It’s time for reciprocity and historic change.”

Yet the United States itself imposes significant tariffs on certain imports.

For instance, tobacco from some countries faces a 350% duty, while Irish butter substitutes are taxed at 260%. Chinese stainless steel kitchenware carries a 197% tariff.

Additional high tariffs apply to peanuts, clothing, footwear and sugar – industries historically protected by Washington, though some, such as US apparel manufacturing, have largely vanished.

Alienating allies

While Trump’s firm stance is supported by many experts, his decision to impose equally harsh measures on allies such as Canada has raised concerns.

Instead of forging alliances to counter so-called unfair trade practices, he has opted for an adversarial approach, applying a 25% tariff on many Canadian goods.

Robert Atkinson, president of the Information Technology & Innovation Foundation, questioned the logic of this approach.

“Canada is an ally that mostly plays by the rules,” he said.

The road ahead

With the new tariffs, businesses and consumers alike are bracing for potential disruptions.

Higher import costs could lead to increased prices on a wide range of goods, from cars to electronics to everyday groceries in the United States.

Meanwhile, retaliatory tariffs from foreign governments could hit US exporters, further complicating the global trade landscape.

Despite the economic risks, Trump remains unwavering.

“This is about making America great again,” he said.

“No more bad deals. No more getting ripped off.” — ©2025 The New York Times Company

This article originally appeared in The New York Times