Key facts
- President Trump announced broad tariffs on nearly all trading partners in April 2025, later modifying them and pursuing bilateral deals.
- New trade agreements have been reached with India, El Salvador, Guatemala, Argentina, and Bangladesh.
- The Supreme Court ruled in February 2026 that the International Emergency Economic Powers Act (IEEPA) cannot be used to levy tariffs.
- Tariffs under Section 232 and Section 301 remain in effect.
- New trade deals focus on economic security, including mirroring U.S. trade actions and screening investment mechanisms.
President Donald Trump has reshaped U.S. trade policy through a combination of aggressive tariff threats and negotiated agreements. Initially announcing sweeping tariffs on nearly all trading partners on April 2, 2025, he later modified these rates and pursued bilateral deals, particularly after a ninety-day deadline for negotiations passed with only two preliminary agreements.
On July 31, 2025, Trump adjusted many of the initial tariffs to lower rates, citing progress in trade talks. Further exemptions were introduced in September 2025 for items such as aircraft parts, pharmaceuticals, natural resources, and agricultural products. By November 14, 2025, specific agricultural products were exempted due to affordability concerns.
The Supreme Court delivered a significant ruling on February 20, 2026, striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The court affirmed that the power to levy tariffs rests solely with Congress. Consequently, Customs and Border Protection ceased collecting IEEPA tariffs on February 22, 2026, though tariffs under Section 232 and Section 301 remain in place.
In early 2026, the Trump administration secured several trade agreements, including a Joint Statement for a trade deal with India and reciprocal trade agreements with El Salvador, Guatemala, Argentina, and Bangladesh. These deals aim to eliminate trade barriers and create new markets for U.S. exports, with a notable focus on economic security, investment screening, and supply chain resilience. American farmers and industry leaders have expressed support for these agreements, highlighting benefits for agricultural exports.