The tariffs, described by the U.S. President as “reciprocal,” take effect today. This levy is in addition to the global minimum tariff of 10% that began on April 5.
On the previous Wednesday, U.S. President Donald Trump introduced a 10% tariff on 184 countries and territories, encompassing the European Union (EU), and announced an additional tariff on those he considers “worst offenders.”
This “reciprocal” tariff is approximately half of what other countries charge the U.S., Trump stated, presenting a chart detailing trade and non-trade barriers on American goods in various countries.
The tariffs include a 20% charge on EU imports, 34% on Chinese goods, 26% on Indian products, 32% from Taiwan, and 46% from Vietnam.
Other countries are included in the list, though they can engage in negotiations with the U.S. to delay immediate tariff implementation.
Japan faced a proposed 24% tariff but is currently in discussions with the U.S. regarding these tariffs. Japanese Prime Minister Shigeru Ishiba has requested that Washington reconsider the measures as part of ongoing consultations between the two nations.
On Tuesday, the White House confirmed that the U.S. will impose a 104% tariff on Chinese imports starting today. This follows the increased tariff threat by 50 percentage points (up from the anticipated 54%) after China declared a 34% tariff on all U.S. products beginning April 10.
The EU is expected to reveal its response to the 20% U.S. tariffs early next week.
The White House has indicated these additional tariffs “will remain in place until President Trump determines that the threat posed by the trade deficit and underlying non-reciprocal treatment is achieved, resolved, or mitigated.”
The executive order signed grants Trump the authority to modify tariffs, allowing for increases if trade partners retaliate or reductions if substantial measures are taken by trade partners to remedy non-reciprocal trade agreements and align with the U.S. on economic and national security issues.
The introduction of new tariffs is causing significant disruption in the global economy as trade partners and competitors prepare responses amidst the uncertainty of the ongoing trade war.
