On April 2nd, President Trump announced the imposition of reciprocal tariffs on trade partner countries. A uniform basic tariff of 10% will be applied to all imports, with additional rates determined by the tariffs and non-tariff barriers of each country or region.
The country-specific tariff rates include 24% for Japan, 20% for the European Union (EU), 10% for the United Kingdom, and an additional 34% for China on top of the existing 20%.
During a press conference in the Rose Garden at the White House, Trump declared, "For decades, the United States has been plundered by nations near and far, regardless of whether they are allies or adversaries. This is a declaration of independence." He emphasized that "We are finally putting America first," and described the trade deficit as "no longer merely an economic issue but a national emergency."
According to White House officials, the uniform 10% basic tariff will take effect on April 5th, while the country-specific additional rates will be implemented on April 9th, targeting approximately 60 countries.
Trump presented a table of country-specific tariff rates during the press conference, noting that most rates are about half the level of tariffs imposed on the U.S. by those countries. He described the tariffs as "not entirely reciprocal but rather kind reciprocal tariffs."
He also stated that the reciprocal tariffs are a response to tariffs and non-tariff barriers against U.S. products, pointing out that "in many cases, friendly nations are worse than adversarial ones when it comes to trade." Trump argued that the new tariffs would promote domestic manufacturing jobs.
Under the reciprocal tariff policy, Vietnam faces a top rate of 46%, followed by China at 34%, India at 26%, and Japan at 24% (Chart 1). Additionally, a basic tariff of 10% will be applied uniformly to all imports.
The U.S.'s two largest trade partners, Canada and Mexico, already face a 25% tariff on many products and are not subject to the newly announced additional tariffs.
There is a strong impression that the U.S. has targeted countries and regions with large trade deficits, where export volumes are significantly smaller compared to import volumes. As a result, in future negotiations with these countries, the U.S. may use tariff rates as a bargaining tool to eliminate non-tariff barriers.
According to a White House fact sheet, reciprocal tariffs will not apply to certain items, including copper, pharmaceuticals, semiconductors, timber, gold, energy, and specific minerals unavailable in the U.S.