Recent Developments
President Trump drives forward with “America First” trade policy. Shortly after taking office on January 20, President Trump issued a memorandum to various department heads outlining his “America First” trade policy. Notably, the memorandum paves the way for robust tariffs and calls for executive branch review of various elements of U.S. trade policy. Read our alert for additional analysis.
United States delays tariffs on imports from Canada and Mexico but imposes 10 percent tariffs on imports from China. On February 1, President Trump, acting under the authority of the International Emergency Economic Powers Act (“IEEPA”), imposed a 25 percent tariff on imports from Canada and Mexico (excluding energy resources from Canada, which were subject to a tariff of 10 percent) and a 10 percent tariff on imports from China. After first threatening to respond in kind—with retaliatory tariffs or other measures—both Canada and Mexico negotiated a 30-day pause in exchange for increased enforcement measures at America’s borders. There was no similar agreement between the United States and China, which became subject to additional tariffs on February 4. Notably, the president initially eliminated the de minimis exemption for certain Chinese-origin imports of items valued under $800, but then later reinstated the exemption.
President Trump announces 25 percent tariff on all steel and aluminum imports entering the United States. On February 10, President Trump signed a proclamation imposing 25 percent tariffs on imports of steel and aluminum from all countries and cancelling previous tariff exemptions. Peter Navarro, a trade advisor to the president, remarked that “[t]he steel and aluminum tariffs 2.0 will put an end to foreign dumping, boost domestic production, and secure our steel and aluminum industries as the backbone and pillar industries of America’s economic and national security.” The new tariffs will take effect on March 12.
President Trump announces reciprocal tariff regime. On February 13, the president paved the way for what he called “the big one,” reciprocal tariffs directed against countries that impose trade barriers on the United States. Under the new framework, the United States will impose tariffs on imports from countries that levy tariffs on imports of U.S. goods, maintain a value-added tax (“VAT”) system, issue certain subsidies, or implement “nonmonetary trade barriers” against the United States. The president stated that the U.S. Department of Commerce will conduct an assessment, expected to be completed by April 1, to determine the appropriate tariff level for each country.
President Trump sets tariff sights on European Union. President Trump has said he “absolutely” plans to impose tariffs on goods from the European Union to address what he considers “terrible” treatment on trade. In an effort to stave off such measures, the European Union reportedly has offered to lower tariffs on imports of U.S. automobiles. Experts suggest that, in the event of U.S. tariffs, the European Union may retaliate with countermeasures against U.S. technology services.
Trump and Putin discuss commencing negotiations to end the war in Ukraine. President Trump stated on February 12 that he had a “lengthy and productive” phone call with Russian President Vladimir Putin in which the two leaders discussed “start[ing] negotiations immediately” and “visiting each other’s nations.” The president followed up with a call to Ukrainian President Volodymyr Zelensky, who reported that the call was “meaningful” and focused on “opportunities to achieve peace.” The dialogue comes amidst Russia and Belarus releasing American detainees in recent days.
President Trump and Indian Prime Minister Narendra Modi meet to discuss deepening cooperation. On January 27, President Trump spoke with Indian Prime Minister Narendra Modi to discuss regional security issues, including in the Indo-Pacific, the Middle East, and Europe. Notably, following the phone call, India cut import duties on certain U.S.-origin motorcycles, potentially in an effort to distance itself from President Trump’s claims on the campaign trail that India was a “very big abuser” of the U.S.-India trade relationship. Prime Minister Modi followed up the discussion with a meeting with President Trump at the White House on February 13.
Secretary of State Marco Rubio meets with “Quad” ministers on President Trump’s first full day in office. On January 21, foreign ministers of the “Quad”—a diplomatic partnership between the United States, India, Japan and Australia—convened in Washington, D.C. In a joint statement, the group expressed its opposition to “unilateral actions that seek to change the status quo [in the Indo-Pacific] by force or coercion.”
U.S. Secretary of State Marco Rubio meets with Panamanian President José Raúl Mulino. In early February, Secretary of State Marco Rubio traveled to Panama to meet with Panama’s President José Raúl Mulino and Foreign Minister Javier Martínez-Acha. During the meeting, Secretary Rubio criticized Chinese “influence and control” over the Panama Canal area. Notably, following the meeting with Secretary Rubio, Panama announced that it would let its involvement in China’s Belt and Road initiative expire.
DeepSeek launches an artificial intelligence app, prompting U.S. national security concerns. In January, DeepSeek—a Chinese artificial intelligence (“AI”) startup—released DeepSeek R1, an AI app reportedly less expensive to develop than rival apps. Reports indicate that the United States is investigating whether DeepSeek, in developing its platform, accessed AI chips subject to U.S. export controls in contravention of U.S. law. Commerce Secretary nominee Howard Lutnick echoed these concerns in his recent confirmation hearing.
President Trump issues memorandum launching “maximum pressure” campaign against Iran. On February 4, the president issued a National Security Presidential Memorandum (“NSPM”) restoring his prior administration’s “maximum pressure” policy towards Iran, with a focus on denying Iran a nuclear weapon and intercontinental ballistic missiles. The NSPM directs the U.S. Department of the Treasury and the U.S. Department of State to take various measures exerting such pressure, including imposing sanctions or pursuing enforcement against parties that have violated sanctions against Iran; reviewing all aspects of U.S. sanctions regulations and guidance that provide economic relief to Iran; issuing updated guidance to the shipping and insurance sectors and to port operators; modifying or rescinding sanctions waivers, including those related to Iran’s Chabahar port project (which India has developed at considerable expense); and “driv[ing] Iran’s export of oil to zero.” See the White House fact sheet.
President Trump signs executive order calling for establishment of a U.S. sovereign wealth fund. On February 3, the president issued an executive order directing the Secretary of the Treasury, the Secretary of Commerce, and the Assistant to the President for Economic Policy to develop a plan for the creation of a sovereign wealth fund. A corresponding fact sheet describes the White House’s goals for the fund, including “to invest in great national endeavors for the benefit of all of the American people.” Treasury Secretary Scott Bessent stated that he expects the fund to be operational within the next year.
Dispute between the United States and Colombia over deportation flights prompts brief tariff threat. On January 26, Colombian President Gustavo Petro barred “U.S. planes carrying Colombian migrants from entering [Colombia’s] territory” due to concerns over migrants’ treatment. President Trump responded by ordering 25 percent tariffs on Colombian goods, to be raised to 50 percent in one week, visa restrictions on Colombian government officials and their families, and cancellation of visa applications. The standoff between the two countries was resolved later that same day, signaling President Trump’s intention to use tariffs as a key foreign policy tool.
Impeached South Korean President Yoon Suk Yeol officially charged with insurrection. On January 26, South Korean prosecutors formally charged impeached President Yoon Suk Yeol with insurrection. Yoon becomes the first president in South Korean history to be criminally charged while still in office. In addition to criminal charges, Yoon faces potential removal from office via impeachment. Should the Constitutional Court uphold the impeachment, as many experts anticipate, South Korea will have two months to hold a new election.