In the midst of rapidly shifting trade policies under President Donald Trump, numerous governments have expressed interest in negotiating tariffs. Following a series of announcements, there has been a notable impact on consumer prices and market confidence. On April 2, President Trump announced new reciprocal tariffs during the first Rose Garden ceremony, which was later followed by a "90-day pause" on April 9, with exceptions for China. The U.S. imposed a tariff of 125% on China, maintaining a 10% tariff on other countries. According to a White House fact sheet, the tariffs aim to "strengthen the international economic position of the United States and protect American workers."
Trade negotiations are actively underway with nations such as Italy, Japan, South Korea, and the United Kingdom. Vice President JD Vance and U.S. Trade Representative Ambassador Jamieson Greer are involved in these discussions. However, the task is substantial given the limited staff at the U.S. Trade Representative office.
The International Monetary Fund has downgraded global growth forecasts, expecting U.S. growth to slow to 1.8% in 2025. President Trump's tariffs include a broad 10% tariff on all countries, with specific elevated tariffs on countries with significant trade deficits. The executive order allows for modifications based on trading partners' actions. Some goods, including specific metals and energy products, are exempt from these tariffs.
In California, Governor Gavin Newsom has directed his administration to form new strategic trade relationships. Newsom has also initiated a campaign to attract Canadian tourists and filed a lawsuit challenging President Trump's emergency powers to impose tariffs. Newsom argues these tariffs are harmful, especially to California's significant economic sectors.
CalChamber President Jennifer Barrera criticized the tariffs, stating they "disrupt global supply chains and raise costs on businesses." The California Chamber of Commerce continues to advocate for free trade, supporting agreements that eliminate tariff barriers and promote economic growth.