by Priya Radünzel, SeaNewsEditor

President Donald Trump announced extensive tariffs on US imports on Wednesday, 2 April 2025, highlighting his view that the trade deficit is a result of unfair trade practices, including currency manipulation and high taxes, from other countries.

The new policy will impose a baseline 10% tariff on all goods from all countries, effective 5 April 2025, at 12:01 EDT.

Additionally, Trump announced reciprocal tariffs on approximately 60 countries, which will come into effect on 9 April at 12:01 ET.

These reciprocal tariffs will significantly increase the overall duty on goods from these countries, particularly affecting several Asian trading partners.

For example, a 34% reciprocal tariff was announced for Chinese imports, raising the total tariff rate to 54%. Of the Southeast Asian countries, Cambodia will face the highest import duty of 49%.

Furthermore, the United States will impose a 20% overall tariff on imports from the European Union. 

According to the official Whitehouse announcement, certain goods will be exempt from reciprocal tariffs.

"Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States."

Although Section 232 includes aluminium, President Trump specifically raised the tariff on aluminium and steel to 25% on 12 March. Additionally, all non-US-manufactured automobiles will be subject to a 25% tariff from 3 April, with tariffs on auto parts (to be determined) expected to follow in the coming weeks.

The existing rules under the International Emergency Economic Powers Act (IEEPA) remain in place for neighbouring Canada and Mexico. A 0% tariff will remain in effect for USMCA-compliant goods, while a 25% tariff will be imposed on non-USMCA compliant goods. Additionally, non-USMCA-compliant energy and potash will be subject to a 10% tariff. 

Should the IEEPA orders be terminated, non-USMCA compliant goods will be subject to a 12% reciprocal tariff.

Due to the range of tariffs announced, the impacts on national economies will be varied. For the US, its overall tariff rate has increased to levels last seen more than a century ago.

According to Reuters, Olu Sonola, head of US economic research at Fitch Ratings, the new global tariffs have increased the US tariff rate on all imports to 22%, a level not seen since around 1910, up from just 2.5% in 2024.

The White House signalled its readiness to adjust and reassess the policy, stating that the tariffs would remain in place "until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated."

For more details on the goods and countries affected, refer to our Kuehne+Nagel customer advisory.

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