Baseline Tariffs

Today, President Trump announced the United States will impose a 10% base tariff on virtually all goods—exempting items outlined under the United States-Mexico-Canada (USMCA) free trade agreement, though the 25% tariffs previously announced on non-USMCA Canadian/Mexican goods stands. The baseline 10% tariff is scheduled to go into effect on April 5^th.

Reciprocal Tariffs

Trump also announced that his Administration will levy reciprocal tariffs on nations who have targeted the U.S., meaning that countries will be assessed tariffs based on the discrepancy in tariff levels against U.S. goods. Approximately 60 countries classified as “worst offenders” (those who impose massive duties on U.S. goods) will receive tariffs calculated as half of that imposed on the United States via tariffs and non-tariff barriers on U.S. exports.

President Trump argued, “In many cases the non-monetary barriers were worse than the monetary ones…They manipulated their currency, subsidized their exports, stole our intellectual property, imposed exorbitant [taxes] to disadvantage our products, adopted unfair rules and technical standards and created filthy pollution havens that were absolutely filthy.”

For instance, China charges U.S. goods with tariffs equating to 67% (as calculated by the White House) and thus Beijing will be assessed a 34% tariff (on top of the existing 20% on China). The European Union (EU) will face a 20% tariff after its tariffs on U.S. goods were measured at almost 40%.

Information on the tariffs other nations wage against the U.S. and Trump’s intended reciprocal tariffs is outlined below. The reciprocal tariffs are scheduled to go into effect on April 9^th.

• Cambodia: 49% (97% on U.S.)
• Vietnam: 46% (90% on U.S.)
• Sri Lanka: 44% (88% on U.S.)
• Thailand: 36% (72% on U.S.)
• China: 34% (67% on U.S.)
• Taiwan: 32% (64% on U.S.)
• Indonesia: 32% (64% on U.S.)
• Switzerland: 31% (61% on U.S.)
• South Africa: 30% (60% on U.S.)
• Pakistan: 29% (58% on U.S.)
• India: 26% (52% on U.S.)
• South Korea: 25% (50% on U.S.)
• Malaysia: 24% (47% on U.S.)
• Japan: 24% (46% on U.S.)
• European Union: 20% (39% on U.S.)
• Israel: 17% (34% on U.S.)
• Brazil: 10% (10% on U.S.)
• United Kingdom: 10% (10% on U.S.)

Auto Tariffs

President Trump also announced that all automobiles manufactured outside of the U.S. will be subject to a 25% tariff, which will go into effect at midnight tonight. Uncertainty remains whether the auto tariffs will stack on top of Trump’s reciprocal tariffs.

Remarks

President Trump stated in his speech that today marks “1 of the most important days” in U.S. history, saying that his tariff plans are “our declaration of economic independence.”

Trump referenced U.S. auto and union workers numerous times during his speech, asserting that these tariffs will protect Americans and “reduce our taxes and pay down our national debt.” He also said, “For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. But now it’s our turn to prosper…Today we’re standing up for the American worker, and we are finally putting America 1^st.”

ACG Analytics will continue to monitor the implementation of President Trump’s tariffs and whether U.S. trading partners attempt to negotiate offramps prior to the implementation deadlines. More information may be found in a report published 2 days ago by the Office of the United States Trade Representative (USTR), which may be viewed here.

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