GTA Monthly Roundup: April 2025

The Global Trade Alert team documented 471 new trade and industrial policy interventions during the last four weeks. These trends emerge:

• The Trump Administration further escalated global trade tensions. Its “reciprocal tariffs” policy imposed 10% baseline tariffs on all imports with limited exemptions, plus higher country-specific tariffs (20-50%). After China retaliated, the US progressively raised Chinese tariffs to 125%. Washington DC also suspended the de minimis duty exemption for Chinese imports of small packages valued under USD 800, taxing them at 120% or USD 200 per package starting from 1 June 2025. New Section 232 investigations launched on trucks, semiconductors, pharmaceuticals, and critical minerals also signal further restrictions.

• The US started to soften its hardline tariff stance by enacting some country and product-specific relief. It temporarily suspended the higher country-specific "reciprocal tariffs" for all except China and exempted semiconductors and electronic products from additional duties, which will be subject to future tariffs under 232 investigations. Finally, it set a tariff hierarchy preventing the cumulation of multiple tariffs on the same goods, with automobile national security tariffs taking highest precedence, followed by border security tariffs for Canada and Mexico, and steel and aluminium tariffs at the lowest tier. 

• Canada, China and the EU announced countermeasures against the US tariffs. Canada responded to the US automobile tariffs with 25% duties on non-CUSMA imports. Beijing matched the 125% duties on US imports and expanded restrictions against US companies through its Unreliable Entity and Export Control Lists. It also introduced export controls on rare earth products and reportedly instructed national airlines to suspend Boeing deliveries. On the other hand, the EU prepared 25% duties on 1’322 US products but temporarily suspended their implementation to allow for negotiations.

• Other responses mainly focused on supporting affected businesses rather than retaliating. Australia (AUD 1 billion), Spain (EUR 14.1 billion), Portugal (EUR 10 billion), and South Korea (over KRW 8.5 trillion) rolled out major funding packages. 

• Multiple countries reduced import duties on basic goods amid economic uncertainty. Argentina cut duties on apparel, footwear and fabrics, Brazil established tariff-rate quotas for critical inputs, the UK temporarily suspended tariffs on consumer and construction items, while Vietnam reduced tariffs on certain food products. 

• Nations continued strengthening domestic industries amid trade tensions. The EU published its first list of "strategic projects" under the Critical Raw Materials Act and launched its “AI Continent Action Plan”, India approved an INR 22’919 crore “Electronics Component Manufacturing Scheme”, Japan awarded JPY 802.5 billion to semiconductor manufacturer Rapidus, and China established 16 new cross-border e-commerce pilot zones.

The GTA Monthly Roundup provides a rapid overview of changes in import barriers, export curbs, subsidies, and related industrial policy measures. It is organised by geography, beginning with the United States, China and the European Union. The final section briefly summarises developments in further regions covered by the GTA. Links to official sources are included in the references.

The United States focused on expanding trade protectionism, with multiple tariffs, export restrictions, and investment controls based on national security concerns. The GTA team documented 113 new interventions during the last four weeks.

The White House imposed export license requirements on NVIDIA H20 chips bound for China and D:5 countries, a move that targets NVIDIA's modified AI chips specifically designed to comply with previous export controls. Similar restrictions were imposed on AMD's MI308 chips and Intel's advanced AI processors, expanding semiconductor export controls targeting chips designed for artificial intelligence applications that could be used for military modernisation efforts.

On 2 April 2025, the Trump administration announced a 10% additional “reciprocal tariff” on all imports from all jurisdictions, with limited exemptions including products subject to past and future Section 232 investigations. The US also implemented country-specific tariff increases, effective from 9 April 2025, including raising duties to 34% on imports from China (initially), 20% on European Union goods, 24% on Japanese products, 26% on South Korean imports, and 32% on Swiss products. Duties were set even higher for certain developing countries, reaching 46% for Vietnam, 49% for Cambodia, and 50% for Lesotho.

China-specific duties increased twice following Chinese response measures (see below). The Trump Administration increased additional duties on Chinese imports from 34% to 84%, subsequently raising these reciprocal tariffs from 84% to 125%. In addition, low-value imports from China and Hong Kong were hit three times. First, the US suspended the de minimis duty exemption for low-value Chinese imports, effectively ending the tariff exemption previously applied to small packages valued under USD 800. These duties were increased twice on the following days, specifically on 8 April and on 10 April, corresponding to each Chinese reaction to US tariff increases. The current status indicates that as of 1 June, these imports will be subject to either an ad valorem duty of 120% or a flat-rate duty of USD 200 per package.

On 10 April 2025, the US suspended the country-specific higher duties, except for China, for 90 days. For all other countries, this action reduced the additional ad valorem duty to the 10% baseline tariff. The complete list of affected countries can be accessed in our dedicated Trump 2.0 thread. On the next day, the White House issued a memorandum clarifying product exemptions under the reciprocal tariffs. The document confirmed that semiconductors and certain electronic products would not be subject to the additional duties. Secretary Lutnick indicated these items will soon be covered under a separate semiconductor tariff regime. 

Related to this and following the pattern of using Section 232 investigations, throughout April, the Commerce Department initiated new investigations into the national security impacts of truck imports, processed critical minerals, semiconductor imports, and pharmaceutical imports. These investigations could lead to additional tariffs, quotas, or other trade restrictions once completed.

In response to overlapping measures, the White House announced a tariff hierarchy where national security tariffs on automobiles take highest precedence, followed by border security tariffs applicable to Canada and Mexico, and then steel and aluminium tariffs, preventing the "stacking" of multiple tariffs on the same imported goods.

In late April, the White House implemented an offset mechanism that allows vehicle manufacturers to reduce their tariff burden on imported components based on their U.S. assembly operations. The scheme offers tax credits worth up to 3.75% of assembled vehicles' retail value through April 2026, decreasing to 2.5% for the following year, applicable to a wide range of passenger vehicles and light trucks assembled within US borders.

The US Administration announced the Seabed Mineral Resources Executive Order, outlining the use of grants, loans, and public procurement to bolster domestic processing capabilities for critical minerals derived from the seabed. The Departments of Defence and Energy were instructed to explore funding mechanisms within 60 days. Similarly, the Seafood Competitiveness Executive Order calls for an "America First Seafood Strategy" that includes measures to enhance domestic processing capacity and promote the production of US fishery and aquaculture products.

The US Department of Transportation approved its first Bridge Investment Programme (BIP) grant under the Trump Administration. It awarded USD 175 million to replace bridges on Interstate 95 over Lake Marion in South Carolina, a project that must comply with Buy America provisions requiring US-manufactured materials. The BIP is an infrastructure investment programme established by Biden’s Infrastructure Investment and Jobs Act.  

The International Trade Administration initiated new trade defence investigations, including parallel antidumping and countervailing investigations on fibreglass door panels from China, and a similar antidumping inquiry on polypropylene corrugated boxes from Vietnam and China (with China additionally facing a countervailing investigation for this product). Following investigations initiated in March 2024, the US imposed definitive antidumping duties ranging from 513.3% to 632.7% and a definitive countervailing duty of 276.06% on Indian imports of melamine. 

State-level technology restrictions continued to expand, with Alabama banning Chinese-linked AI platforms DeepSeek and Manus from state IT infrastructure. Kansas followed with more encompassing measures, prohibiting the use of DeepSeek AI on state devices and networks as well as other AI platforms controlled by designated foreign adversaries. These actions represent a growing trend of state-level initiatives restricting foreign technology access to government systems and critical research infrastructure. 

China implemented a series of retaliatory trade measures against the United States while continuing its domestic economic agenda. The GTA team documented 56 new interventions.

On 4 April 2025, in response to the US “reciprocal tariffs”, China expanded its restrictions by adding 16 US companies to its Dual-Use Export Control List, prohibiting exports of dual-use items to these entities unless special permission is granted. The country also placed 11 US defence companies on China's Unreliable Entity List, banning them from engaging in China-related export activities. On the same day, the Chinese Ministry of Commerce announced export control measures on 33 rare earth product categories, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. 

Also responding to later US actions, the Ministry added six more US defence companies to the Unreliable Entity List and 12 US companies to the Export Control List. 

China matched every tariff increase announced by the US. First, the State Council Tariff Commission announced a 34% additional tariff on all US imports. The escalation continued when China increased these additional tariffs from 34% to 84% on 9 April 2025, and then further raised them from 84% to 125% on 11 April 2025. With the final increase, the Chinese government declared it would "ignore any subsequent tariff increases by the US on Chinese goods" due to the virtual elimination of market access for US products. In addition to tariffs, China reportedly directed national airlines to halt new deliveries from Boeing. Through its Unreliable Entity List, it further imposed import restrictions affecting 11 and six US defence companies.

Following this escalation, according to reports, China exempted certain semiconductor products from additional US import duties. Sources also indicated an additional exemption list –covering vaccines, pharmaceuticals, semiconductor equipment and others– was circulated for comments.

China’s State Council restructured the country's cross-border e-commerce pilot zones, establishing 16 new pilot zones whilst simultaneously cancelling three existing zones. The newly established pilot zones include the entirety of Hainan Island, replacing individual zones in Haikou and Sanya. In these zones, eligible cross-border e-commerce enterprises can receive exemptions from value-added tax and consumption tax when exporting goods. Earlier, the Chinese Ministry of Finance issued CNY 500 billion of special treasury bonds to support four state-owned commercial banks in replenishing their core tier-one capital. 

At the subnational level, Sichuan province adopted a package of economic support measures. These included state aid for performing arts and sporting events, and for the cultural tourism sector. Additionally, the province introduced production subsidies for qualified used car dealership enterprises. 

Quzhou city in Zhejiang Province acquired a controlling stake in PV cell producer DAS Solar to support the company, reportedly facing financial difficulties. Hefei in Anhui Province launched a CNY 10 billion smart robotics industry fund to strengthen its position as a leading hub for intelligent robotics.

China’s State Council approved the expansion of a pilot programme to accelerate the opening up of the service sector to nine additional cities. Dalian, Ningbo, Xiamen, Qingdao, Shenzhen, Hefei, Fuzhou, Xi'an, and Suzhou will now be able to remove foreign ownership and investment restrictions in strategic areas, including telecommunications and digital industry development. 

Beyond import and export restrictions, China imposed investment limitations on US companies. The 11 and six US defence companies added to the Unreliable Entity List were subject to a ban on making any new investments in China.

The EU focused on countering US tariffs and bolstering industrial competitiveness, with member states launching national and regional support initiatives. The GTA team documented 41 new interventions by the EU and its member states.

In response to the import tariffs imposed by the US on steel, aluminium, and derivative products, the EU published a new package of countermeasures. The package established a 25% additional duty on 1’322 industrial and agricultural products, initially scheduled to enter into force on 16 May 2025. It also imposed additional duties on other five agricultural products starting from December 2025. However, the implementation of these measures was later suspended until 15 July 2025 to allow time for EU-US negotiations.

To mitigate US tariff impacts, Spain introduced a EUR 14.1 billion "Commercial Response and Relaunch Plan", comprised of loans, guarantees and export credit insurance. Regionally, Catalonia allocated EUR 1.5 billion via “Pla Responem". With a similar objective, Portugal launched its EUR 10 billion “Reforçar Programme”, which included a credit line for working capital and investments.

In terms of state aid, Poland received approval for a EUR 1.5 billion reinsurance scheme to cover war-related risks to companies offering insurance for freight transport to Ukraine, and Portugal established a EUR 612 million scheme to lower electricity levy rates for energy-intensive companies. To support green investments, Spain implemented a EUR 400 million production subsidy scheme for renewable hydrogen through the European Hydrogen Bank, Greece granted EUR 300 million for biofuels and renewable fuels production, while France provided EUR 380 million for renewable energy and decarbonisation equipment production, including batteries, solar panels, wind turbines, and other green technologies. 

At the supranational level, the Commission published the first list of 47 "strategic projects" under the Critical Raw Materials Act. The projects will be developed across 13 member states and Namibia, covering 17 raw materials identified, including lithium (22 projects), nickel (12), cobalt (10), manganese (7), and graphite (11). It also unveiled its AI Continent Action Plan for securing global leadership in artificial intelligence. Under the plan, the EU will offer financial grants for the establishment of AI Gigafactories through public-private partnerships. The European Investment Fund concluded a EUR 985 million guarantee with ABN AMRO Bank for financing for Dutch businesses. It also signed a EUR 200 million guarantee with Triodos Bank to support SMEs in the Netherlands, Belgium, Spain, and Germany.

The Commission imposed provisional antidumping duties between 50% and 62.5% on Chinese imports of certain steel track shoes, effective 23 April 2025. Furthermore, it implemented definitive anti-subsidy duties ranging between 7.3% to 14.2% on Chinese imports of certain mobile access equipment, effective 26 April 2025.

Under the economic sanctions against Russia for its invasion of Ukraine, the Commission suspended broadcasting activities of eight Russian media outlets. This had been proposed in the 16th sanctions package announced in February 2025.

The GTA documented 261 new interventions announced by jurisdictions outside the US, China, and the European Union in the last four weeks. Significant developments include:

Argentina reduced import duties on 928 apparel, footwear and fabric products. Following the announcement of January 2025, the country distributed the import tariff-rate quotas for alternative-engine vehicles among 21 companies. It also eliminated the import licensing requirement on used capital goods, while simultaneously removing the import ban on 547 eight-digit subheadings, liberalising the importation of used machinery and equipment.

Australia unveiled an AUD 1 billion economic resilience program in response to the US “reciprocal tariffs”. The program offers zero-interest loans to enhance export competitiveness.

Bangladesh prohibited the imports of yarn via land ports shared with India. The affected border ports include Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari.

Brazil adopted the Economic Reciprocity Law, allowing its government to implement countermeasures against "unilateral measures" that impact the country’s international competitiveness. In terms of trade policy, the government set new temporary import tariff-rate quotas for 18 products, including nickel cathodes and motors. Earlier, it established, modified or extended import duties and import tariff-rate quotas for 13 products, including certain electric conductors, optical fibre, chemicals, medicines and plastic products. 

Cambodia proposed an import tariff reduction on 19 products in response to “reciprocal tariffs” imposed by the US. The measure covers food products, electronic goods, and machinery.

Canada announced 25% tariffs on automobiles imported from the United States, specifically targeting "non-CUSMA compliant fully assembled vehicles" and "non-Canadian and non-Mexican parts entered into the US which are subsequently used in vehicles that are shipped to Canada”.

Chinese Taipei rolled out a TWD 88 billion “Export Supply Chain Support Plan” in response to US tariffs. The plan includes financial support, tax incentives, and assistance in strengthening export capabilities for the industrial sector. The government also established new export licensing requirements for pressing machines to North Korea and Iran. 

Egypt launched an industrial support initiative through its Industrial Development Authority. The government allocated EGP 30 billion for the first phase of an interest payment scheme targeting seven priority industrial sectors, namely pharmaceuticals, food, engineering, chemicals, ready-made garments, spinning and weaving, mining, and building materials. 

Hong Kong suspended postal service for goods destined to the United States of America. The measure is in response to the elimination of the duty-free de minimis treatment for postal items dispatched from Hong Kong to the US.

India approved the INR 22'919 crore “Electronics Component Manufacturing Scheme” to provide incentives for the local production of certain electronic components. The scheme includes 25% fiscal support on capital expenditure and sales-based incentives for domestically manufactured components. 

Japan introduced support measures for businesses affected by US automobile tariffs, tightened FDI rules for certain categories of foreign investors, and strengthened "catch-all" export control requirements related to conventional weapons. In terms of firm-specific support, it awarded JPY 802.5 billion to semiconductor manufacturer Rapidus Corporation and signed a JPY 34.2 billion loan with JFE Holdings Inc to finance the acquisition of a Canadian coal mining company.

Mexico published a new “Public Sector Acquisitions Law”, increasing the national content requirement for government procurement from 50% to 65%. Under the ”Plan Mexico” strategy announced in January 2025, the country unveiled the new MXN 83.8 billion Food Sovereignty and Self-Sufficiency Plan and the Harvesting Sovereignty programme to provide loans to small and medium-scale producers of corn, beans, rice, coffee, milk, and fisheries. 

Russia’s President instructed the government to adopt additional restrictions on foreign investment and commercial transactions by entities from "unfriendly" states. The restrictions will also apply to option agreements by foreign investors who divested from Russian subsidiaries after February 2022 and now seek to reacquire them. Moreover, Moscow raised import duties on perfumes, cosmetics and haircare products imported from "unfriendly" states.

The South African Customs Union implemented a full import duty rebate on solid sodium hydroxide and reduced import duties on wheat and wheat flour. Conversely, the union increased the rate of customs duty on sugar from ZAR 2.34/kg to ZAR 2.86/kg, followed by a further increase to ZAR 3.77/kg a week later.

South Africa imposed an export licensing requirement on certain types of metal waste. 

South Korea adopted numerous support measures in response to US tariffs. These included the “Emergency Response Measures for Strengthening the Automobile Ecosystem”, providing KRW 2 trillion in aid, expanding the scope of the Emergency Operating Fund, and offering state-owned financing for automobile companies. The package also provided up to KRW 790 billion in guarantees to SMEs in Hyundai and Kia's supply chain network and temporarily doubles trade insurance limits with a 60% discount on short-term export insurance premiums. Additionally, Korea’s Export-Import Bank announced a crisis response special program with a budget of KRW 6.5 trillion and measures to support the semiconductor industry with an additional KRW 3 trillion in loans. As for company-directed funding, the government granted USD 700 million for telecommunications equipment export by Samsung Electronics. 

Thailand issued incentives for ceramic and construction material companies that reduce GHG emissions. These included exemption of import duties on raw materials, tax concessions, and temporary simplified visa requirements for foreign workers. 

Turkiye announced a suspension of lemon exports, initially scheduled for 8 April 2025, but later postponed to 15 May 2025.

The United Arab Emirates signed a USD 150 million loan agreement with Trafigura to support exports of commodities. 

The United Kingdom temporarily suspended import tariffs on 89 products, including consumer items such as pasta, fruit juices, spices, and construction materials like plywood and plastics. In late April, HM Treasury published the draft legislation for its Carbon Border Adjustment Mechanism (CBAM). The draft confirms January 2027 as a start date and a product scope similar to the EU’s, excluding glass and ceramics from the launch.  

Vietnam reduced import tariff rates on certain products in response to geopolitical developments, including frozen chicken thighs (from 20% to 15%), duck meat (from 15% to 10%), and peeled garlic (from 15% to 10%).

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