President Trump announced new tariffs, including a 10% baseline tariff globally and steeper rates for specific countries like China and the EU. Exclusions apply to Canada and Mexico, maintaining prior tariffs. Additional tariffs on autos and changes to exemptions for small parcels from China will also take effect, aiming to protect U.S. trade interests.
On April 5, 2023, US President Donald Trump implemented new tariffs, referred to as a “declaration of economic independence,” with a baseline of 10 percent imposed globally. Enhanced rates target countries labeled as severe offenders, specifically impacting key trading partners such as China and the European Union with significantly higher tariff rates.
The new tariffs feature a 10 percent baseline that commenced at 12:01 am on April 5, followed by heightened rates for specific nations that took effect on April 9. China faces a 34 percent tariff, on top of a previous 20 percent related to fentanyl supply chains, totaling 54 percent. Additional tariffs are set at 26 percent for India, 25 percent for South Korea, and 24 percent for Japan. Trump asserted that these rates are about half of what those nations have charged the US historically.
Canada and Mexico are excluded from these new tariffs; their existing tariffs of 25 percent on imports remain in place. Generally, goods entering the US under the US-Mexico-Canada Agreement are exempt from the new baseline tariff. White House officials also noted that country-based tariffs will not compound with existing sector-specific tariffs on imports like steel and aluminum. Notably, certain nations, including Cuba, North Korea, Belarus, and Russia, will not see new tariffs due to existing sanctions.
In addition to the tariffs announced, a new 25 percent tariff on imported automobiles and parts will start concurrently, adding to earlier tariffs imposed on steel and aluminum. Investigations are underway regarding imports of copper and lumber, with further tariffs likely to follow. Moreover, a 25 percent levy will potentially target goods from countries importing Venezuelan oil, and similar measures against Russian oil are under consideration.
A significant change will affect small parcels from China, which will lose their duty-free status. Effective May 2, these shipments will incur a duty of either 30 percent of their value or $25 per item—escalating to $50 after June 1. The move will impact numerous low-cost products, motivated by the growth of Chinese e-commerce platforms like Shein and Temu.
Trump’s recent tariff announcement represents a significant shift in U.S. trade policy, aiming to protect American interests against perceived unfair practices by foreign nations. With new tariffs targeting major economies, particularly China, and excluding key trade partnerships with Canada and Mexico, the overall impact on global trade dynamics could be profound. Additionally, the alterations to duty-free exemptions for small parcels from China indicate a strategic approach to controlling product importation.
Original Source: vietnamnews.vn
