Trump's recently implemented tariffs are now active. Here's essential information you should be aware of.
In a bid to correct unfair trade practices, reduce the U.S. trade deficit, and strengthen the U.S. defense industrial base, President Trump has announced new reciprocal tariffs. These tariffs, effective from April 9, 2025, have raised the baseline rate to between 15-20%, up from a previous 10% tariff announced on April 2, 2025[1][2].
The new tariffs are not uniform across all trading partners. For countries with large U.S. trade deficits or insufficient engagement in negotiations, higher tariffs (15-30%) have been imposed[1][2]. The tariffs are ad valorem duties, percentage-based on the value of the goods[2][3].
The tariff rates vary substantially from country to country. For instance, Chad, Lesotho, and Libya face a 15% reciprocal tariff, delayed to August 7 and effective from July 31, 2025[1]. On the other hand, goods from Brazil, Laos, Myanmar, Switzerland, Iraq, and Serbia are subject to the highest tariff rates of 50%, 40%, 40%, 39%, 35%, and 35% respectively[1].
Exceptions apply, with certain products exempted per the Executive Order[1]. The tariffs target all products from the affected countries unless specified otherwise. However, goods for specific sectors such as smartphones are exempt from the new tariffs[1].
Some countries have negotiated or agreed to deals, thereby avoiding higher tariffs, while others either failed to engage or offered terms deemed inadequate by the U.S. administration[2][3]. In most cases, the new tariffs are not exact trade deals but rough sketches that could take months or years to finalize[1].
Goods from Mexico and Canada are exempt from tariffs if they're compliant with the US-Mexico-Canada free-trade agreement[1]. Goods from India could be subject to an additional 25% tariff due to an executive order signed by Trump[1]. Vietnam, India, Taiwan, and Thailand are among the countries facing tariffs greater than 15%[1].
The EU has negotiated a 15% tax on pharma exports to the U.S. as part of the agreement announced with Trump[1]. Thirty-nine countries' goods, as well as members of the European Union, are subject to 15% tariffs[1].
It's important to note that the tariffs Trump enacted could be rendered illegal due to an ongoing court challenge[1]. The U.S. and other trading partners involved in agreements are not on the same page about many proposed terms[1].
In summary, the new tariffs are part of a broader "reciprocal tariff" policy raising baseline tariffs to 15-20%, with some countries facing even higher rates up to 30%, targeting all products broadly to address trade imbalances and national security concerns[1][2][3].
[1] Source: Office of the United States Trade Representative [2] Source: White House Fact Sheet [3] Source: U.S. Department of Commerce
- The new reciprocal tariffs, effective from April 9, 2025, are designed to address business and financial aspects such as trade imbalances and national security concerns, as part of a broader "reciprocal tariff" policy-and-legislation.
- The tariffs, which are ad valorem duties, vary substantially from country to country, with goods from some countries like Brazil, Laos, Myanmar, Switzerland, Iraq, and Serbia subjected to the highest tariff rates of 50%, 40%, 40%, 39%, 35%, and 35% respectively.
- The implementation of these tariffs has sparked a wave of political and general-news discussions, as some countries have managed to avoid higher tariffs through negotiation or agreements, while others have failed to do so, leading to increased tension in international business and finance relations.
