President Trump Announces Reciprocal Tariffs
On Wednesday, April 2, a day he deemed “Liberation Day” for U.S. trade policy, President Trump gave an address at the White House announcing “reciprocal tariffs” on all other countries who currently have tariffs on American goods. He claimed this has been a long time coming and will even the playing field in global trade.
He also called his actions a “kind reciprocal” as he won’t enforce the exact same percentage that he believes other countries are charging on the U.S. During his address he held up a board with the rates of other countries and what he plans to impose against those countries. He said there would be a 10% global minimum tariff, with increased rates for countries Trump considers “bad actors” in global trade. He said the 10% tariffs would go into effect at 12:01 am eastern time on April 5, 2025, while any additional tariffs would be implemented at 12:01 am eastern time on April 9, 2025. The announced additional rates are as follows:
- China: 34% (He has threatened to add another 50% to this number if China doesn’t back down on their threats to add additional tariffs on American goods, but this hasn’t been confirmed yet.)
- European Union: 20%
- South Korea: 25%
- India: 26%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- Thailand: 36%
- Switzerland: 31%
- Indonesia: 32%
- Malaysia: 24%
- Cambodia: 49%
- United Kingdom: 10%
- South Africa: 30%
- Brazil: 10%
- Bangladesh: 37%
- Singapore: 10%
- Israel: 17%
- Philippines: 17%
- Chile: 10%
- Australia: 10%
- Pakistan: 29%
- Turkey: 10%
- Sri Lanka: 44%
- Colombia: 10%
He cited the International Emergency Economic Powers Act as his grounds for implementing the new tariffs. This is the same justification he used when implementing the new tariffs currently on Canada, Mexico, and China.
A small list of items will not be subject to the additional tariffs. They are as follows: articles subject to 50 USC 1702(b); steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; copper, pharmaceuticals, semiconductors, and lumber articles; all articles that may become subject to future Section 232 tariffs; bullion; and energy and other certain minerals that are not available in the United States.
For full information, please view the Federal Register notice. We will continue to provide further updates as they become available. You can read the full White House announcement here.
