April 22, 2025

President Trump declared April 2nd as Liberation Day with an executive order declaring a national emergency arising from U.S. goods trade deficits. The executive order imposed a 10% baseline tariff that went into effect on April 5th and reciprocal tariffs to over 180 countries while exempting Canda and Mexico due to USMCA provisions. However, our North American partners were not exempt from 25% tariffs on imported vehicles and auto parts that went into effect April 3rd.

Some countries retaliated to reciprocal tariffs including China, imposing tariffs to U.S. imports, and prompting President Trump to respond with an increase effective immediately. The trade war with China has led to multiple increase in tariffs, now standing at China being subjected to 245% levies and the U.S. subjected to 125%. The Administration later announced a 90 day pause on all other reciprocal tariffs and conveyed it is looking into separate tariffs on semiconductor chips and certain electronics. Effective July 14, the Administration also plans to impose 20.91% tariffs on tomatoes imported from Mexico, as the U.S. withdrew from a bilateral agreement aiming to protect domestic tomato growers.

In the latest efforts to prevent tariffs, Italian Prime Minister Giorgia Meloni visited the White House where President Trump assured there will be 100% be a European Union tariff deal and is working his way to make other deals with other countries. On the other hand, Governor Newsom is also holding conversations with trade partners around the world to encourage them to invest in California and maintain stable trading relationships. His latest action is suing the Trump administration, challenging the president’s constitutional authority to enact tariffs.

This month, the Chamber led its annual binational delegation trip to Washington, D.C., where trade and economic development were a top priority. On our meeting with Mexican Ambassador Esteban Moctezuma, he expressed optimism due to strong bilateral ties and ongoing communication between economic, foreign affairs, and public safety authorities. In our meetings with Department of State, Small Business Administration, and Department of Commerce, top-level officials underlined the importance of business delegations which continue to be a powerful mechanism to educate decision makers on our region’s contribution to national economy and elevate regional priorities such as infrastructure and policies that our businesses need to thrive.

The Chamber continues to actively voice opposition on tariffs in partnership with state and nationwide partners including the U.S. Chamber who has shared an online tool to highlight how trade helps boost growth in the U.S. We welcome your input on how tariffs and/or the uncertainty of tariffs has impacted your business – please reach out to kzamarripa@sdchamber.org to share your story.