President Trump unveiled new tariffs, including a 10% global baseline tariff effective April 5, with higher rates for key trade partners. Canada and Mexico are exempt from these new tariffs. A significant focus is placed on China, with tariffs reaching up to 54%. Additional tariffs on vehicles and other imports are forthcoming, along with an end to duty-free exemptions for small parcels from China.
In a significant policy shift, President Donald Trump announced new tariffs aimed at enhancing U.S. economic independence. Effective April 5, a baseline tariff of 10 percent will be imposed globally, with increased tariffs for countries identified as major trade offenders. The elevated tariffs will include a 20 percent penalty on the European Union and a substantial 34 percent rate on China, incorporating previous levies notably tied to illicit drug supply issues.
Additional tariff rates for trading partners will see India facing 26 percent, South Korea at 25 percent, and Japan at 24 percent. Furthermore, Trump indicated that tariffs applied would be calculated based on the total rates and other trade barriers imposed by these nations, remarking that the new rates represent only half compared to what the U.S. has been subjected to previously.
Notably, Canada and Mexico will remain exempt from the new tariffs under the US-Mexico-Canada Agreement, despite currently facing 25 percent tariffs on imports. However, if these nations reach agreements concerning the existing levies, they will still be liable to the new baseline rates. The White House clarified that the new tariffs do not accumulate with existing sector-specific tariffs.
Certain countries, such as Cuba and North Korea, are excluded from the new tariffs as they are already subjected to punitive sanctions. Additionally, effective April 2, new tariffs will be implemented on imports of vehicles and some automotive parts. Trump is also exploring tariffs on imports of copper, lumber, semiconductors, and pharmaceuticals.
On April 5, a critical policy change will end the duty-free exemption on small parcels from China. This reform aims to address the rising imports of low-value goods from Chinese e-commerce platforms. Henceforth, products imported under this exemption will incur tariffs of either 30 percent of their value or fixed costs of $25 per item, rising to $50 after June 1.
President Trump’s announcement of new tariffs represents a decisive approach to reshaping trade dynamics with several nations. The baseline tariff implementations and country-specific increases target strategic economic interests and trade practices. While aiming to protect U.S. industries, the new policies also underscore the challenges that could arise in international relations and economic strategies moving forward.
Original Source: vietnamnews.vn
