10% baseline tariffs

While Trump rolled back most of the new tariffs introduced on April 2, he left intact the 10% base duties that went into effect on April 5. This provided temporary relief to dozens of trade partners previously hit with levies ranging from 11% to 50% announced last week. Still, the 10% base rate remains a significant barrier. It may reduce the risk of an immediate recessionary shock, but it does not eliminate structural threats, including uncertainty, rising costs, and deteriorating investment conditions that continue to weigh heavily on the economy.

Higher tariffs on China

China remains the key exception to President Donald Trump's recent decision to suspend new tariffs. While most countries were granted a temporary reprieve, tariffs on Chinese imports were sharply increased—the rate jumped to 125% effective April 9. The move marks a new escalation in the prolonged US-China trade conflict. These reciprocal tariffs have effectively doubled import costs, adding to inflationary pressures and raising input expenses for businesses. The trade war is not just persisting, it is intensifying, posing long-term risks to global supply chains and cross-border investment.

Steel and aluminum tariffs

Trump's 25% tariffs on steel and aluminum, introduced on March 12, also remain firmly in place. These tariffs continue to exert pressure on global manufacturing networks. The metals are critical inputs for a wide range of industries, from automotive to advanced technology. Rising costs for steel and aluminum are squeezing industry margins, complicating logistics, and exacerbating supply disruptions, especially in an already fragile global economy. Trump's stance on metal tariffs keeps trade tensions elevated on a global scale.

Tariffs on autos and auto parts

The 25% tariffs on autos and auto parts that went into effect on April 2 remain one of the primary sources of pressure on the global auto sector. Combined with tariffs on steel and aluminum, these duties are triggering a chain reaction, from rising raw material costs to disruptions in final assembly. Given the high degree of international integration in the automotive industry, even localized restrictions quickly turn into global supply issues. Operating costs are rising, logistics are breaking down, and investment activity is slowing. Amid a weakening global economy, the risks to the sector are mounting.

Pharmaceutical tariffs

Pharmaceutical tariffs have yet to take effect, but they are already looming on the horizon. On Tuesday, President Donald Trump announced plans to impose significant tariffs on pharmaceutical products. Markets reacted immediately, with shares of major drugmakers falling, extending a downward trend that began after the initial 10% baseline tariffs and increased levies on goods from Europe, Japan, and China. The prospect of new trade barriers threatens to disrupt global drug supply chains and poses serious risks to the pharmaceutical industry and healthcare systems worldwide.