Trump issues reciprocal tariffs
President Trump followed through on a promise to issue reciprocal tariffs on countries that put levies on products from the United States
On Feb. 13, 2025, Trump announced a plan to apply reciprocal tariffs on imports that equal any tariffs or other levies put on those products from the U.S. by other countries as of Wednesday, Apr. 2, 2025.
In a press conference at the White House Rose Garden, Trump detailed that plan, which is set to go into effect Saturday, Apr. 5. Trump has issued an executive order which places a baseline 10% tariff on all goods being imported to the U.S. from other countries, as well as 25% tariff on all imported automobiles.
The 10% baseline does not apply to Canada and Mexico, which are already paying a 25% levy on products they import to the U.S.
In addition, 60 countries which charge higher duties on U.S. imports will have higher tariffs imposed on their goods coming into the country. Most are being set at what Trump called a "discount" of roughly half the tariff rate they charge on U.S. goods.
Examples include:
- China – 34% import tariff, 67% tariff charged on U.S. goods.
- European Union – 20% import tariff, 39% tariff charged on U.S. goods.
- Vietnam – 46% import tariff, 90% tariff charged on U.S. goods.
- Taiwan – 32% import tariff, 64% tariff charged on U.S. goods.
- Japan – 26% import tariff, 52% tariff charged on U.S. goods.
- India – 26% import tariff, 52% tariff charged on U.S. goods.
- South Korea – 25% import tariff, 50% tariff charged on U.S. goods.
These tariffs build on a series of executive orders issued March 4, 2025, in which Trump enacted a 25% tariff on nearly all goods coming to the U.S. from Canada and all products being imported from Mexico. The president also doubled the tariff he imposed the previous month on Chinese products to 20%.
Duleep Rodrigo, U.S. consumer and retail sector leader, KPMG, said in emailed commentary that retailers will need to adapt to a difficult situation created by tariffs.
"New tariffs are adding pressure on retailers, complicating supply chains and forcing tough pricing and sourcing decisions,” said Rodrigo. “While large players may weather the storm, many will struggle to absorb rising costs, particularly in price-sensitive categories where margins are already tight.
“Success in this environment requires agility — planning for different scenarios and strengthening operations to address short-term challenges while staying focused on long-term success," Rodrigo concluded.
The European Union, Mexico, Canada, China, Japan, and South Korea have all publicly indicated they plan to retaliate against any new tariffs.
David French, NRF executive VP of government relations, issued a public statement warning the new tariffs will lead to higher costs in the U.S.
"More tariffs equal more anxiety and uncertainty for American businesses and consumers," said French. "While leaders in Washington may not care about higher prices, hardworking American families do. These tariffs will have a disproportionate impact on local communities and will be particularly harmful to small retailers.
"Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer," French said. "Tariffs will not be paid by foreign countries or suppliers. We encourage President Trump to hold trading partners accountable and restore fairness for American businesses without creating economic uncertainty and higher prices for American families."
Tariff plans go through changes
U.S. tariffs have undergone a number of twists and turns since Trump first signed an executive order placing a 25% tariff on nearly all goods coming into the U.S. from Canada, effective Feb. 4, as well as a 10% tariff on imports from China.
While the order also called for a 25% tariff on all Mexican goods, it was delayed for one month to allow for negotiations. On Feb. 3, the Trump Administration also paused the implementation of a planned 25% tariff on imports from Canada for 30 days as negotiations on a border deal took place.
In total, the U.S. does about $1.6 trillion in annual business with the three countries, which account for more than a third of the goods and services that are imported to or bought from the United States and are this country's largest trading partners.
In other tariff-related developments, the Trump Administration briefly excluded shipments from China from the de minimis exception, which exempts imported shipments with an aggregate value of less than $800 from having to pay tariffs but then reverted to the same eligibility requirements for Chinese goods that had been in place since September 2024.
[READ MORE: Trump restores tariff loophole used by used by low-cost shopping apps]
