Global policy shift: Trump considers imposing worldwide tariffs between 15-20% on many nations
In a recent announcement, US President Donald Trump revealed that most trading partners not negotiating separate trade deals will face tariffs of 15% to 20% on their exports to the United States. This move comes as the deadline for deals before higher rates take effect on Friday approaches.
The US has not yet announced tariff rates for approximately 200 countries, as stated by Trump. However, higher rates of up to 50% have already been announced for some countries, including Brazil, which will see these tariffs take effect starting on Friday.
Canadian Prime Minister Mark Carney admitted that Canada, which exports 75% of its goods to the US, will likely have to accept some tariffs. Trump made this announcement while sitting alongside British Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland.
Under Trump's 2025 trade policy, the proposed tariff rates on exports to the United States vary by product and country but include several key rates. For instance, autos and auto parts will face a 25% tariff starting April 3, 2025, with some exemptions for US-based content from Canada and Mexico. Semiconductors and pharmaceuticals will face tariffs of 25% or higher. Copper imports will face a 50% tariff starting August 1, 2025, while agricultural products will see tariffs on "external" agricultural imports beginning April 2, 2025.
Reciprocal tariffs, which are part of efforts to make bilateral trade more balanced, will range from 25% up to 40% depending on the country. These tariffs will affect various countries, including Japan (25%), Korea (25%), South Africa (30%), Kazakhstan (25%), Laos (40%), Malaysia (25%), Myanmar (40%), Tunisia (25%), Bosnia and Herzegovina (30%), Indonesia (32%), Bangladesh (35%), Serbia (35%), Cambodia (36%), Thailand (36%), and others.
Several countries are actively negotiating lower reciprocal tariffs as part of ongoing trade talks to address the US trade deficit. Countries currently negotiating to secure lower tariff rates include dozens that have agreed or offered to lower their tariff rates and eliminate non-tariff barriers as part of ongoing trade discussions.
The US has recently clinched a trade deal with the European Union that includes a 15% tariff on most EU goods, $600 billion of investments in the US by European firms, and $750 billion in energy purchases over the next three years. Smaller agreements have been made with Britain, Indonesia, and Vietnam. Trump has stated his preference for straightforward tariff rates over complex negotiations.
[1] White House Fact Sheet on Trade Policy [2] BBC News: Trump announces new US-UK trade deal [3] CNBC: Trump announces tariffs on $300 billion in Chinese goods, and more
- It seems that the US is preparing to impose significant tariffs on exports from various countries, including a 15% to 20% tariff on most trading partners not negotiating separate trade deals.
- The Trump administration has proposed tariff rates on exports to the United States that vary by product and country, with several key rates such as 25% for autos and auto parts, 25% or higher for semiconductors and pharmaceuticals, and 50% for copper imports.
- The US trade policy also includes reciprocal tariffs, which will range from 25% up to 40% depending on the country, and will impact multiple countries, including Japan, South Africa, and Malaysia.
- It's worth noting that Canada, which exports 75% of its goods to the US, will likely have to accept some tariffs under Trump's policy.
- Several countries are actively negotiating lower reciprocal tariffs as part of ongoing trade talks to address the US trade deficit, with countries like Britain, Indonesia, and Vietnam securing smaller agreements.
- The US has recently clinched a significant trade deal with the European Union, which includes a 15% tariff on most EU goods, $600 billion of investments in the US by European firms, and $750 billion in energy purchases over the next three years.
- The general news, policy-and-legislation, and business sectors have been closely following these developments, with live updates and analysis available on various news outlets such as the White House Fact Sheet on Trade Policy, BBC News, and CNBC.
