Trump Imposes 10% Tariff on Imports, 25% on Cars, 34% on China

President Donald Trump has announced a comprehensive new tariff policy, effective April 5, which imposes a minimum 10% levy on nearly all goods entering the United States. This policy excludes Canada and Mexico, which are exempt from the 10% baseline tariff and reciprocal levies for now. However, non-compliant goods from these nations will continue to face a 25% tariff, originally imposed due to concerns over drug trafficking and crime.

The 10% tariff would only apply if the current 25% duties on Canadian and Mexican imports are lifted or suspended. In addition to the general import levies, the plan also imposes a separate 25% tariff on all foreign-made automobiles, effective immediately. The administration is also implementing “reciprocal” tariffs on approximately 60 nations, calculated at half their current total trade barriers on US exports.

Among the major US trade partners impacted, China will face a 34% tariff, the EU 20%, Vietnam 46%, Japan 24%, India 26%, Indonesia 32%, and Brazil 10%. These country-specific rates take effect April 9. Trump described the tariffs as "kind reciprocal," emphasizing the administration's intent to address perceived trade imbalances. Trump declared a national emergency linked to the US trade deficit, which exceeded $918 billion in 2024, invoking the International Emergency Economic Powers Act to authorize the measures.

This latest escalation in trade policy follows a series of tariff-related moves by Trump since his return to the White House. In March 2025, Trump announced a 20% levy on all Chinese imports and a 25% tariff on all steel and aluminum imports. These actions, along with the recent 10% tariff on all imports, signal a significant shift in US trade policy, potentially reshaping decades of free-trade agreements with both allies and adversaries.

The impact of these tariffs is expected to be far-reaching, affecting various sectors and industries. Companies and global trading partners are scrambling to respond to the new tariffs, which could lead to retaliatory measures from affected countries. The economic implications of these tariffs are still uncertain, but they are likely to have significant effects on global trade and the US economy. The administration's move to impose reciprocal tariffs on 60 nations, based on their trade barriers, is a bold step that aims to level the playing field for US exports. However, the potential for retaliatory measures and the broader economic fallout remain significant concerns.