US President Donald Trump announced a new set of tariffs on Wednesday, which, he argued, would allow the United States to economically thrive.
These new import taxes, implemented via executive order, are expected to create economic shockwaves around the world.
The US president believes these measures are necessary to address trading imbalances and protect American jobs and manufacturing.
These are the main components of the plan.
10% baseline tariff
In a background call before Trump’s speech, a senior White House official told reporters the president would impose a “baseline” tariff on all imports to the US.
This rate is set at 10% and will take effect on 5 April.
Importers of foreign goods into the US will have to pay the tax to the government, although this could have a knock-on effect on consumers.
Some countries will only face the base tariff rate. These include:
- United Kingdom
- Singapore
- Brazil
- Australia
- New Zealand
- Turkey
- Colombia
- Argentina
- El Salvador
- United Arab Emirates
- Saudi Arabia
Custom tariffs for ‘worst offenders’
White House officials also announced specific reciprocal tariffs on approximately 60 of the “worst offenders”.
These will be enforced starting 9 April.
High tariffs on US goods, “non-tariff” barriers to trade, or other actions believed to undermine American economic goals are the targets of these measures.
Key trading partners subject to these personalized tariff rates include:
- European Union: 20%
- China: 54%
- Vietnam: 46%
- Thailand: 36%
- Japan: 24%
- Cambodia: 49%
- South Africa: 30%
- Taiwan: 32%
No additional tariffs on Canada and Mexico
Canada and Mexico will not be subject to the 10% baseline tariff rate, as they have already been targeted during Trump’s presidency.
The White House stated it will deal with both countries using a framework outlined in Trump’s previous executive orders, which implemented tariffs on these countries to address the entry of fentanyl into the US and border issues.
Trump previously set those tariffs at 25% on all goods entering from both countries, before announcing some exemptions and delays.
25% tariffs on car imports
Additionally, the president confirmed the beginning of a new American “25% tariff on all foreign-made automobiles”.
This tariff took effect almost immediately, at midnight local time.
