Over the past year, U.S. trade policy has swung sharply back toward broad-based tariffs, reviving uncertainty across global markets and supply chains.
The shift began on Feb. 1, 2025, when the administration imposed new tariffs on Chinese imports, citing fentanyl-linked supply chains, unfair trade practices and trade imbalances. Days later, Washington announced plans for 25% tariffs on imports from Mexico and Canada on national security grounds, though these were later paused and modified, with exemptions for USMCA-compliant goods.
The most dramatic move came on April 2, 2025, when the White House unveiled sweeping “Liberation Day” reciprocal tariffs on most U.S. imports. Invoking emergency powers, the administration imposed a baseline tariff of about 10%, with higher rates for selected countries. Subsequent executive orders in April and May adjusted rates and expanded coverage, including changes to duties on low-value Chinese imports.
Legal pressure mounted on May 28, when the U.S. Court of International Trade ruled that parts of the emergency tariffs exceeded presidential authority, throwing their durability into question. Despite this, tariff actions continued, including higher duties on copper imports in June and threats of tariffs of up to 50% on Brazilian goods in July.
By mid-2025, new tariffs were announced on Indonesian and Indian imports, while several high duties came into force in August amid diplomatic talks and WTO challenges. Further rate adjustments followed in November.
By late 2025, U.S. average tariff rates had climbed to multi-decade highs, boosting customs revenue but weighing on business confidence.
On Feb. 20, 2026, the Supreme Court struck down most emergency tariffs imposed under the IEEPA. Hours later, the president imposed a temporary 10% global tariff under separate legal authority, keeping trade tensions firmly in place.
Timeline of Market Movements
Feb. 1, 2025 – New US tariffs against China revive trade-war risk; Asian equities and exporters come under pressure.
Feb.–Mar. 2025 – Trump Threatens tariffs on Mexico and Canada unsettle North American supply chains before exemptions ease market stress.
April 2, 2025 – “Liberation Day” tariffs trigger global equity sell-offs, currency volatility and higher import-cost forecasts.
April–May 2025 – Repeated rate adjustments fuel uncertainty, complicating pricing decisions for manufacturers and retailers.
May 28, 2025 – Trade court ruling introduces refund risk for importers, lifting bond-market focus on fiscal exposure.
June 30, 2025 – Copper tariffs push metals prices higher and raise costs for construction and manufacturing firms.
July 2025 – Tariff threats against Brazil, followed by moves on Indonesia and India, widen emerging-market trade risk premiums.
August 2025 – Implementation of high tariffs lifts U.S. customs revenue but deepens concerns over inflation pass-through.
Nov. 2025 – Further tariff tweaks add to year-end volatility in equities and currencies.
Feb. 20, 2026 – US Supreme Court ruling briefly boosts markets on hopes of tariff rollback.
Feb. 20, 2026 – A new temporary 10% global tariff reins in optimism, restoring uncertainty over trade, inflation and growth.
