Trump's trade policy: 10% import tariff begins
The 'baseline' tariff took effect at 12:01 a.m. ET and applies across goods entering through US ports, airports, and bonded warehouses. According to a Customs and Border Protection (CBP) bulletin, a 51-day grace period will apply to shipments loaded before the deadline and arriving by May 27.
Starting Wednesday, steeper duties—ranging from 11% to 50%—will be imposed on imports from 57 major trading partners, including China, the European Union, India, and Vietnam.
'This is the single biggest trade action of our lifetime,' noted Kelly Ann Shaw, trade lawyer at Hogan Lovells and former White House adviser, during a Brookings Institution event, asserting, 'It's a seismic shift in how the US trades with every country on earth.'
The market response was immediate. US equities recorded a historic two-day plunge, erasing $5 trillion from the S&P 500 by Friday's close. Commodities slumped, and investors pivoted toward safe-haven assets like Treasury bonds.
The initial 10% duty covers countries such as Australia, the UK, Colombia, Argentina, Egypt, and Saudi Arabia. The broader plan, branded 'reciprocal tariffs ' by the Trump administration, targets countries with what Washington deems imbalanced trade practices.
Chinese goods will face a cumulative 54% tariff, while imports from the European Union will be levied at 20%. Meanwhile, Vietnam, once a key substitute for Chinese manufacturing in US supply chains, will be hit with a 46% duty. Hanoi has agreed to enter talks with Washington in response.
Canada and Mexico remain exempt from this round but continue to face 25% duties on certain goods under the US-Mexico-Canada Agreement (USMCA), primarily tied to fentanyl control measures and compliance with labor and origin standards.
The administration also excluded more than 1,000 product categories—worth $645 billion in 2024—from the new tariffs. These include crude oil, refined fuels, pharmaceuticals, semiconductors, uranium, titanium, lumber, and copper. However, several of these sectors remain under review for possible inclusion under national security provisions.
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