US President Donald Trump recently announced new tariffs aimed at trading partners, introducing a baseline tariff and higher rates for certain countries, starting in April 2025.
The new tariffs include a 10 percent “baseline tariff” that will apply to a wide range of global economies, with additional steeper tariffs for those the US deems “bad actors.” The baseline tariff will take effect at 12:01 am on April 5, 2025, while the higher tariffs for specific countries will begin on April 9, 2025.
Countries such as the European Union and China will face increased rates. The European Union will be subject to a 20 percent tariff, and China will face a 34 percent tariff. For China, this additional tariff will add to an earlier 20 percent levy imposed earlier this year due to concerns about its role in the supply chain of illicit fentanyl, bringing the total rate on Chinese goods to 54 percent. Other countries affected include India, which will face a 26 percent rate, South Korea at 25 percent, and Japan at 24 percent.
Exclusions include major US trade partners Canada and Mexico, who will not be subject to these new tariffs but will continue to face tariffs on steel, aluminum, and some other goods. The US-Mexico-Canada Agreement (USMCA) will also maintain tariff exemptions for certain goods.
The new tariffs will not apply in addition to sector-specific duties already in place, such as the 25 percent tariffs on steel and aluminum imports, which will also expand to include canned beer and empty aluminum cans. New tariffs on auto imports and certain parts will also be implemented, starting April 5, 2025.
The US government is also investigating imports of copper, lumber, and potentially other goods, which may lead to additional tariffs in the future. In addition, a 25 percent levy will be imposed on goods from countries importing Venezuelan oil, beginning on April 2, 2025.
On a smaller scale, a duty-free exemption for small parcels from China will be eliminated, potentially disrupting the import of low-cost goods. Under the new rule, products imported from China that previously benefited from this exemption will face duties either of 30 percent of their value or $25 per item, which will increase to $50 per item after June 1, 2025. The policy change will take effect on May 2, 2025.
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