Trump’s Reciprocal Tariffs: Full List of Countries Hit Hardest by New Tariffs

India is in the crosshairs of former U.S. President Donald Trump’s latest trade war move, as the United States imposes a 26% tariff on Indian goods. This is part of a broader overhaul of global trade rules, replacing a system that has been in place for over 75 years. Trump’s new policy introduces a baseline 10% tariff on all imports, with even higher penalties for nations he deems to have unfair trade practices.

The European Union faces a 20% tariff, while Vietnam is hit with 45%, Japan with 24%, South Korea with 25%, Taiwan with 32%, and Thailand with 36%. China, which recorded a massive $295 billion trade surplus with the U.S. in 2024, will be subject to a 34% tariff. Treasury Secretary Scott Bessent noted that, when combined with the 20% duties imposed in February over the U.S. fentanyl crisis, China’s total tariff rate now stands at 54%.

Countries that recorded trade deficits with the U.S., such as Britain, Brazil, and Singapore, have been spared higher rates and will only face the baseline 10% tariff. White House officials argued that many countries would have even larger trade deficits with the U.S. if their trade policies were more equitable.

Trump’s Justification: Currency Manipulation and Unfair Barriers

The new reciprocal tariffs are aimed at countering alleged policies such as currency manipulation, weak environmental and labour standards, and restrictive regulations that limit U.S. exports. Trump’s administration claims these measures are necessary to level the playing field and protect domestic manufacturers.

Despite having a $2.5 billion goods trade surplus with the U.S. in 2024, Russia is notably absent from Trump’s new tariff list. The administration has not yet provided a clear explanation for this exclusion.

Canada and Mexico Remain Exempt, With Conditions

Goods from Canada and Mexico will remain exempt from the new tariffs due to pre-existing 25% fentanyl-related duties and a 10% tariff on Canadian energy and potash. Additionally, USMCA-compliant goods will continue to enjoy indefinite tariff exemptions, providing relief to U.S. automakers.

This exemption marks a shift from Trump’s earlier stance, as he had initially indicated that the USMCA exemption—granted just a month ago—would expire on April 3. However, White House officials clarified that fentanyl-related tariffs will remain until drug trafficking and border migration conditions improve. If these tariffs are lifted in the future, a 12% duty will be applied to imports that do not meet USMCA rules of origin.

Auto and Industrial Goods Tariffs Stay Unchanged

Certain existing tariffs will not be compounded by the new reciprocal duties. Imports that already face a 25% tariff under Section 232 of the Trade Act of 1962—such as automobiles, auto parts, steel, and aluminium—will be exempt from additional increases.

Similarly, industries under ongoing or potential Section 232 national security investigations—including copper, lumber, semiconductors, and pharmaceuticals—will also remain unaffected. A forthcoming annexe is expected to list additional exempted products, covering critical minerals, energy, and other strategic goods.

The 10% baseline tariff will take effect on April 5 at 12:01 a.m. EDT (0401 GMT), while the higher reciprocal tariffs will follow on April 9 at the same time.

Trump Ends China’s Small Package Exemption

In a significant move, Trump has signed an executive order permanently ending the duty-free “de minimis” exemption for packages from China and Hong Kong valued under $800. This exemption had been exploited by Chinese e-commerce giants like Shein and PDD Holdings’ Temu to avoid U.S. tariffs by shipping directly to consumers.

Earlier this year, Trump’s administration attempted to shut down this loophole, citing concerns that it facilitated the entry of fentanyl precursor chemicals into the U.S. A Reuters investigation last year confirmed these allegations.

However, enforcement challenges, including difficulties in screening large volumes of packages at airports and collecting duties on short notice, delayed the crackdown. The administration has now finalised plans to permanently close the loophole, with Reuters first reporting the decision on April 3.

Trump Declares National Emergency Over Trade Deficit

Citing the “large and persistent” U.S. global goods trade deficit—which surged over 40% to $1.2 trillion in 2024—Trump invoked the International Emergency Economic Powers Act (IEEPA). His executive order states that the growing deficit has weakened domestic production capacity, particularly in U.S. manufacturing and the defence-industrial base.

Trump has frequently used IEEPA to justify economic measures, including the February tariffs on Chinese, Mexican, and Canadian goods related to the fentanyl crisis. Before his presidency, IEEPA had only been used for economic sanctions, not for imposing tariffs.

With these sweeping changes, the global trade landscape is set for a significant shift, with potential repercussions for U.S. consumers, international businesses, and geopolitical relations.

Conclusion 

Trump’s latest trade tariffs mark a seismic shift in global commerce, escalating economic tensions with key trading partners. By targeting countries with perceived unfair trade practices, his administration aims to protect domestic industries while reshaping long-standing trade dynamics.

The new policies, including the removal of China’s small package exemption and increased tariffs, will likely spark international retaliation and disrupt supply chains, making the coming months critical for global markets and diplomatic negotiations.

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