The collection of tariffs introduced by US President Donald Trump of 10 percent on all imports from many countries has begun, and higher levies on the goods of 57 major trading partners should begin next week.
The initial “baseline” tariffs of 10% went into effect at US ports, airports and bonded warehouses at 12:01 a.m. ET, marking Trump’s complete rejection of the system of mutual tariffs negotiated after World War II.
“This is the largest single trade action in our lifetime,” said Kelly Ann Shaw, a trade attorney at the law firm Hogan Lovells and a former White House trade adviser during Trump’s first term.
Speaking at a Brookings think tank forum Thursday, Shaw said she expects tariffs to change over time as countries try to negotiate lower rates. “But this is huge. This is a pretty seismic and significant shift in the way we trade with every country in the world,” she added.
Higher tariffs set to take effect Wednesday
Trump’s tariff announcement on Wednesday rocked global stock markets to their core. Oil and commodity prices plunged, while investors rushed to the safety of government bonds. Among the countries hit first by the 10 percent tariff are Australia, Britain, Colombia, Argentina, Egypt and Saudi Arabia.
Higher “reciprocal” tariffs of 11 percent to 50 percent are set to take effect Wednesday. Imports into the European Union will be hit with 20 percent tariffs, while Chinese goods will be hit with 34 percent tariffs, bringing Trump’s total new levies on China to 54 percent.
Vietnam, which has profited from US supply chains moving away from China after Trump’s trade war with Beijing during his first term, will be hit with a 46 percent tariff and agreed yesterday to discuss a deal with Trump.
More than 1,000 product categories exempted
Canada and Mexico are exempt from Trump’s latest tariffs because they are still subject to a 25% tariff related to the US fentanyl crisis on goods that do not comply with the rules of origin between the US, Mexico and Canada.
The US president has excluded goods such as steel and aluminum, cars, trucks and auto parts because they are subject to special 25% national security tariffs. His administration has also released a list of more than 1,000 product categories exempt from tariffs.
These include imports of crude oil, petroleum products and other energy products, pharmaceuticals, uranium, titanium, lumber and semiconductors, and copper, which is estimated to be worth $645 billion in imports by 2024.
