US President Donald Trump announced Wednesday a 10% baseline “reciprocal” tariff on all countries effective from 5 April, although the EU and China will see implementation on 9 April.  

The individualised tariff rates will be applied to all goods entering the US, except for certain goods which already face a specific 25% tariff such as cars, auto parts, steel and aluminium. According to the White House, copper and semiconductors will also be exempt, potentially indicating these will be the next goods to face a 25% duty under Section 232. “Certain minerals” that are not available in the US will also be exempt, Kallanish reports.

The US government claims to have worked out how much tariffs US exporters face in different countries, with the calculation also taking into account VAT and non-monetary barriers, and decided to impose half of that average. For example, China’s calculated “tariffs charged to the USA” averaged 67%. Trump decided to impose a 50% discounted rate of 34% on Chinese goods.

The European Union will face 20%, India 26%, Japan 24% and South Korea 25%. Although the UK, Australia, Brazil and other countries had a 10% calculated charge, their rates were not halved as the baseline tariff is 10%. Cambodia will have one of the highest rates at 49%, although Vietnam isn’t far behind with a 46% levy.

“For decades, our country has been looted, pilled, draped and plundered by nations near and far, both friend and foe alike,” says Trump. “Foreign scavengers have torn apart our once beautiful American dream… but it’s not going to happen anymore.”

Describing the so-called Liberation Day as “the day American industry was reborn,” Trump says the US will see $6 trillion in new investments. Some of that, he says, will come from carmakers Stellantis, Honda, Nissan and Hyundai, which have committed “billions of dollars in just 2.5 months” of the new administration.

Trump also confirmed the 25% tariff on cars and auto parts will be effective on 3 April, as planned. For Canada and Mexico, non-USMCA compliant goods will face a 25% duty, and a 10% levy on energy and potash. All compliant items will be tariff-free.

“We’ve seen companies coming in like we’ve never seen before,” notes the President. “Likewise, all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be called to ask for exemptions from these tariffs, I say: terminate your own tariffs, drop your barriers. Don’t manipulate your currencies.”

“Tariffs give our country protection against those that would do US economic harm… And many were looking to do US economic harm… but they will give us growth. These terrorists are going to give us growth like you haven’t seen before, and it’ll be something very special to watch,” he adds.