US tariff policy drift
- America's tariff approach is tightening in some sectors while promised tariff actions on China appear to be drifting. (reuters.com) - The administration told Mexican auto and steel companies not to expect USMCA tariff rollbacks, signalling sectoral tariffs may be permanent. (reuters.com) - Businesses are already filing for refunds on roughly $166 billion of tariffs, creating a costly, complex administrative burden for the government. (theguardian.com)
The Trump administration is making some tariffs look permanent while its promised tariff offensive against China is losing momentum. (usnews.com) U.S. Trade Representative Jamieson Greer told Mexican auto and steel executives on April 21 not to expect tariff relief under the United States-Mexico-Canada Agreement, according to two people who attended the meetings. One source said Greer told Mexico’s auto industry that at least some tariffs are “here to stay” even with the trade pact still in force. (money.usnews.com) At the same time, the China side of the policy has narrowed. Reuters reported on April 21 that more than a year into Trump’s second term, the administration’s tariff moves have not changed Beijing’s trade or military behavior, and officials are sending mixed signals about what comes next. (usnews.com) Part of the drift followed a February 2026 Supreme Court ruling that struck down many tariffs imposed under the International Emergency Economic Powers Act, the emergency-powers law Trump had used for broad tariff actions. That decision undercut a central legal tool for the White House’s China strategy. (time.com) The administration has kept some China duties in place, but at lower levels than once threatened. A White House order in November 2025 reduced fentanyl-related tariffs on Chinese imports from 20% to 10% and suspended a higher reciprocal tariff rate until November 10, 2026. (whitehouse.gov; kelleydrye.com) The rollback problem is now administrative as well as political. The administration opened a refund portal on April 20 for about $166 billion in tariff payments after the court ruling, setting off a new round of claims from importers that paid the now-invalid duties. (time.com; cbsnews.com) That leaves companies facing two tracks at once: refunds for old tariffs that courts voided, and warnings that newer sector tariffs on autos and steel may remain. Reuters reported that businesses and officials are now dealing with contradictory decisions across China policy and North American trade. (usnews.com; money.usnews.com) Trump said on April 21 that he would “remember” companies that do not seek refunds, adding another political signal to a process that customs officials are already turning into a large reimbursement program. For now, the clearest line in U.S. tariff policy is not a broad new China push, but a harder stance on selected industries closer to home. (forbes.com; money.usnews.com)
