GTPA Trade Pulse Update: Reverse Uno? Trump Rewinds Tariffs—but Keeps His Cards Close
April 24, 2025
Reverse Uno? Trump Rewinds Tariffs—but Keeps His Cards Close
On April 24, President Donald Trump rolled back parts of the “Liberation Day” tariff blitz announced earlier this month. Facing heavy domestic pressure from business lobbies, public backlash, and early signs of economic strain, the administration has taken what some are calling a strategic sidestep under pressure — or in trade circles, a classic “Reverse Uno”.
But make no mistake: the tariff war isn’t over. In fact, it may just be entering its next phase.
Key Changes (and What They Signal)
Auto Industry Breaks Through
The auto sector scored a major win. Under intense lobbying from U.S. carmakers, the administration will exempt certain auto parts from new tariffs, particularly those sourced from China. However, the broader 25% blanket tariff on all foreign-made vehicles and components—slated for May 3—remains untouched.
Impact: Relief for OEMs sourcing parts globally—but downstream pricing pressure remains as full-vehicle imports are still in the firing line.
China Tariffs Rolled Back—But Not Gone
The controversial 145% tariffs on Chinese goods have been significantly reduced, though not removed. The move appears designed to cool rising U.S.-China trade tensions without appearing to fold.
Impact: Marginally positive for consumer goods and retail importers, but uncertainty remains around enforcement and product classification.
Retail Sector Rings Alarm Bells
Retail giants—including Walmart, Target, and Home Depot—warned of higher consumer prices, squeezed margins, and supply disruption. Their direct appeals to Trump reportedly influenced this week’s rollback.
Impact: Tariff-sensitive inventory and long lead times are increasing short-term volatility in stock and pricing strategies.
Public Sentiment: Faltering Confidence
With inflation still high and polls showing only 37% public approval of Trump’s economic agenda (down from 42% in January), the administration is clearly feeling the heat.
Impact: We may see more tactical walk-backs as 2026 elections loom—but also more headline-grabbing tariff moves to energize Trump’s base.
What’s Next: Trump’s Not Done
President Trump has announced plans to impose 25% tariffs on imports of semiconductors, pharmaceuticals, electronics, copper, wood, and critical minerals. These measures are part of a broader strategy to bolster domestic manufacturing and address national security concerns.
The administration has initiated national security investigations under Section 232 of the Trade Expansion Act of 1962 for these sectors. While the statute allows up to 270 days for completion, reports suggest an expedited timeline is likely. While some sectors saw relief, others are now directly in the crosshairs. The administration has floated new 25% tariffs on critical supply chain categories, including:
Strategic Signal: Trump is repositioning tariffs as a long-term tool for industrial policy—not just a trade weapon. Expect this list to grow.
GTPA View: Not the “Art of the Deal”
This update reflects a strategic recalibration, not a full reversal. Trump is pivoting—not pausing—using tariffs to manage optics while preserving leverage. But with exemptions for big industry players and mounting public dissatisfaction, this round shows the cracks in the dealmaker’s playbook.