Nearly nine months have passed since President Trump announced a major shift in trade policy, and while the United States now has its steepest tariffs in close to 100 years, worldwide commerce has not fallen apart. Instead, it has changed course.
Companies and countries have adjusted their trading patterns. The United States purchases fewer goods straight from China these days, but it buys more products from factories China owns in countries with lower tariff rates, such as Vietnam.
Meanwhile, China ships more products to nearly every other nation, particularly inexpensive goods heading to Europe.
Automakers move operations to America
Nissan, a carmaker with plants on five continents, decided tariffs meant it should focus more on the United States.
The company increased the number of Rogue SUVs it makes in Tennessee rather than bringing them in from Japan. It also started pushing other vehicles made in America, including the bigger Pathfinder SUV and Frontier pickup, while cutting back on imports from Mexico.
“There’s been a very deliberate plan to put marketing dollars behind the cars that are being produced in the U.S.,” Jérémie Papin, Chief Financial Officer, said in a recent interview.
The car business got hit hard by tariffs, with major companies together reporting close to $12 billion in extra tariff expenses earlier in the year. Until now, automakers such as Nissan have not raised their prices much, taking the financial hit themselves with smaller profits. The average price for a new car sat just under $50,000 in November, only 1.3% higher than the previous year, Cox Automotive data shows.
April tariff announcement
On April 2, the president revealed broad reciprocal tariffs of 10% on no fewer than 60 countries, but important trading partners faced steeper tariffs. China got hit with 34% tariffs, Japan with 24%, and the European Union with 20%. The tariff on cars brought into the country jumped to 25%. When Trump made his announcement, he pointed out some of the high tariffs other nations place on American farm products and automobiles.
“They have taken so much wealth from our country, and we’re not going to let that happen,” Trump said then. He added later, “There is no tariff if you build your plant – your product – in America.”
The tariff actions seemed to work. Over the following months, the president and his team would reveal trade deals to boost market access to the United Kingdom, including promises to purchase more ethanol, beef, cereals, fruits, vegetables, and other farm goods.
Tensions with China
With China, the Trump administration did more than just impose tariffs. Officials labeled Chinese organizations as national security threats, limiting U.S. money going into Chinese businesses. The United States also tightened rules on Chinese access to technology.
Stopping soybean purchases came early, but Chinese officials made a much larger move in early October when the country revealed sweeping limits on rare-earth mineral exports.
China controls about 70% of worldwide rare-earth mining and holds an even larger portion of processing capacity.
China’s action on rare-earth minerals was so important that Treasury Secretary Scott Bessent and U.S. Trade Ambassador Jamieson Greer held a press conference on Oct. 15, criticizing the impact it would create worldwide. Greer said China’s move “is not proportional retaliation” but “an exercise of economic coercion on every country in the world.”
After that, both nations looked for a way out.
By late October, China agreed to postpone its limits on rare-earth minerals for at least a year. The United States agreed to reduce tariffs by 10% and stop a rule that blocked Chinese companies from certain U.S. technology exports.
Canadian relations worsen
In March, Trump put 25% tariffs on Canadian products not included in the United States-Mexico-Canada Agreement (USMCA), except for energy and potash fertilizer imports, which got 10% tariffs.
Canada fought back by putting 25% tariffs on roughly $30 billion worth of U.S. products.
The overall Canadian tariff went up to 35% in August. The president then stopped trade discussions after the province of Ontario ran an advertisement in the United States using former President Ronald Reagan’s words criticizing tariff policies.
Canadian leaders said a close partnership that had long helped the country had turned into a major weakness.
Addressing affordability
Trump started getting questions about affordability in the fall as shoppers complained about high prices. Nations such as Brazil were dealing with 50% tariffs, which raised the costs of some common items.
In a speech earlier this month, Trump blamed the economy on his predecessor, saying, “I inherited a mess”, saying that the nation’s economy is stronger now than a year ago. On Truth Social on Dec. 27, Trump credited his tariff policies for helping the economy.
“Tariffs are creating GREAT WEALTH, and unprecedented National Security for the USA. Trade deficit has been cut by 60%, totally unheard of. 4.3% GDP, and going way up. No inflation!!! We are respected as a Country again.”
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Source: https://www.cryptopolitan.com/trumps-tariffs-reshaped-global-trade-in-2025/
