Following weeks of expectation, U.S. President Donald Trump announced extensive new tariffs on trade allies on Wednesday, describing it as a “statement of economic independence.”

A new “base tariff” set at 10 percent will be imposed globally, with higher rates specifically designed for countries that Washington considers to be problematic.

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New tariffs

A baseline tariff of 10% will be implemented starting at 12:01 am (0401 GMT) on April 5th. For individuals the White House considers “the worst offenders,” higher tariffs will come into play beginning at 12:01 am on April 9th.

Higher additional tariffs significantly affect key U.S. trade allies; for instance, the European Union encounters a 20 percent rate whereas China deals with a 34 percent level.

For China, the total rate increases to an extra 54 percent due to an additional 20 percent tariff that Trump introduced earlier this year, citing allegations about its involvement in the illegal fentanyl trade.

Key collaborators also encompass India with a 26 percent increased rate, South Korea at 25 percent, and Japan at 24 percent.

Trump said: “For nations that treat us badly, we will calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating.”

He mentioned that the figures are “roughly half of what they have been charging us.”

Exclusions

White House officials stated on Wednesday that major U.S. allies like Canada and Mexico will not be affected by the new tariffs.

Earlier, Trump implemented 25% tariffs on goods imported from both nations, with Canadian energy facing a slightly lower rate. These duties will remain in effect for now.

However, products entering the largest economy globally through the US-Mexico-Canada Agreement will remain exempt from duties.

If Canada and Mexico manage to agree on the tariffs, they will still face Trump’s new standard rate.

The White House additionally stated that the recent tariffs imposed on a country basis do not accumulate upon the sector-specific tariffs, such as those previously enforced for steel and aluminum imports.

Cuba, Belarus, North Korea, and Russia will not be affected by Trump’s new “reciprocal tariffs” because they are already under sanctions that “hinder significant trade,” according to the White House.

Other tariffs

On Thursday, new tariffs of 25 percent on imported cars and specific components will come into effect as well, posing additional difficulties for the sector.

Earlier, Trump introduced 25 percent tariffs on steel and aluminum imports. These levies will now be extended to affect canned beer and aluminum cans as well.

He has also initiated investigations into the imports of copper and timber, potentially resulting in additional tariffs.

White House officials stated on Wednesday that the president is considering analogous actions regarding semiconductors, pharmaceuticals, and potentially critical minerals as well.

Separately, a 25 percent levy on goods from countries importing Venezuelan oil can take place from April 2. Trump has threatened a similar “secondary tariff” on Russian oil.

Small parcels

On Wednesday, Trump instructed the termination of the tariff-exempt status for small packages coming from China as well, which is expected to significantly disrupt the influx of affordable goods.

The regulation has encountered significant criticism, with U.S. officials citing the expansion of Chinese-owned online stores like Shein and Temu as one reason for an increase in parcels utilizing this exception.

Imports brought into the country through this “loophole” from China will now face a tariff rate set at either 30% of their value or $25 per unit, with an increase to $50 per unit effective June 1st.