President Donald Trump announced a set of reciprocal tariffs on April 2, 2025, aiming at nearly all countries that trade with the United States. This move deviates from Washington’s longstanding stance on free trade and globalization. These tariffs, set to take effect on April 9, will mainly target countries with whom the US has significant trade deficits and those that impose substantial tariffs on US imports. In 2023, the US trade deficit hit $1.1 trillion, which is a record globally.
Trump stated in an executive order that while the principle of reciprocity has been central to US trading policy, taxes and barriers on American goods from trading partners have been detrimental to the US economy. His argument was that US tariffs on imports are lower compared to those imposed by its trading partners, indicating an imbalance that these new tariffs aim to correct.
The tariffs also single out countries like Syria, Myanmar, Sri Lanka, and Pakistan, which are either recovering from conflict or seeking financial support from the International Monetary Fund. The exact rates for each country vary but generally fall between 10 and 50 percent, with China set to face a 34 percent tariff in addition to a 20 percent tariff already in place, leading to a total effective tariff of 54 percent. China is the second largest trading partner of the US.
The White House released a list of 57 countries, territories, and blocs subject to these increased tariffs. Notably, countries like Mexico and Canada, which are already grappling with 25 percent tariffs imposed in February and subsequently revised, are not on this list. However, they still face these tariffs, with some exceptions for products compliant with the US-Mexico-Canada Agreement (USMCA).
Among the exempt products are copper, pharmaceuticals, semiconductors, certain minerals, and energy products, reflecting a strategic approach to safeguard crucial industries and imports not available domestically. The additional tariffs announced by Trump on March 26 for automobile imports and parts will not receive further increases as of the latest announcement.
In essence, while Trump’s new reciprocal tariffs signify a significant shift in US trade policy, emphasizing a punitive approach towards trade imbalances, they also consider strategic exemptions to mitigate broader economic impacts. This action underlines a tough stance on global trade, with a potential surge in trade tensions and economic repercussions.
Source: https://www.aljazeera.com/news/2025/4/3/trumps-reciprocal-tariffs-how-much-will-each-country-be-hit?traffic_source=rss
