section_path: Key events and negotiations/April-June 2025
section_name: April-June 2025
paragraph_text: April-June 2025
  
  On April 2, a day he called "Liberation Day", Trump declared an emergency regarding the national deficit and announced "reciprocal tariffs" on all countries not subject to other sanctions. A baseline 10% tariff on nearly all US imports took effect on April 5. Panic induced by the announcement led to a severe stock and bond market crash. Planned April 9 tariff increases on 56 countries were delayed for 90 days, to July 8. After a retaliatory spiral, US tariffs on Chinese goods rose to 145% and Chinese tariffs on US goods rose to 125%. Steel and aluminum tariffs, a 25% tariff on automobiles imposed April 3, and other sector-specific duties also remained. Politico estimated the average effective US tariff rate reached 27%, the highest level in over a century.
  
  On April 21, CEOs of major US retailers warned Trump that the trade war with China would lead to visible price increases and product shortages in two weeks. The first cargo ships carrying Chinese goods tariffed at 145% arrived on May 6 with shipments cut in half. Trump reportedly pivoted focus toward negotiation, sidelining Navarro and promoting Scott Bessent as his lead economic advisor. By June, the US reached trade deals with the UK and China. The UK agreement reduced select tariffs but kept the 10% baseline. China lowered tariffs on US goods to 10% and resumed rare earth exports; the US lowered its tariff on Chinese goods to 30% (10% baseline + 20% fentanyl) and cut de minimis tariffs to 54%. Trump stated the 10% tariff would remain for all countries even after negotiations. Trump announced the 10% baseline tariff would remain for all countries even after negotiations.
  
  On May 28, the United States Court of International Trade unanimously ruled that Trump had exceeded his authority by imposing the "fentanyl tariffs" and "reciprocal tariffs". The Court of Appeals for the Federal Circuit granted a temporary stay the next day, allowing the tariffs to remain in effect while it considered the case. The court set oral arguments for July 31.
  
  On June 4, 2025, Trump increased tariffs on steel and aluminum imports from 25% to 50%. On June 12, steel tariffs were expanded to include a range of household appliances including refrigerators and dishwashers.
  
  By mid-June, with the 90-day pause on increased reciprocal tariffs set to expire on July 8, Trump told reporters he would send letters to all other nations telling them "This is the deal, you can take it or leave it." Meanwhile, Lutnick said he expected "deal after deal" to emerge within the next week while Bessent said he expected the deadline to be pushed back for countries negotiating "in good faith".