US Imposes Sweeping New Tariffs Under Trump Trade Shift

US Imposes Sweeping New Tariffs Under Trump Trade Shift

10% Baseline Tariff Takes Effect

U.S. customs agents began collecting a new 10% baseline tariff on all imports from many countries at 12:01 a.m. ET Saturday. The move marks a significant break from the post-World War II system of multilateral, agreed-upon tariff rates. The duties are being paid by U.S. importers at all seaports, airports, and customs warehouses.

Trade lawyer and former White House adviser Kelly Ann Shaw described the action as “the single biggest trade action of our lifetime,” signaling a fundamental shift in global commerce.

Higher Tariffs Set to Begin Wednesday

Starting Wednesday, additional “reciprocal” tariffs ranging from 11% to 50% will apply to goods from 57 larger U.S. trading partners. These new levies include:

• European Union: 20%
• China: 34% (bringing total new tariffs on China to 54%)
• Vietnam: 46%
• Taiwan: 32%
• Japan: 24%
• Israel: 17%

Stock Market and Commodity Shock

The announcement triggered a massive selloff in global stock markets. By Friday’s close, the S&P 500 had lost $5 trillion in value — a record two-day drop. Prices for oil and commodities also plunged as investors shifted funds to government bonds.

Countries Hit with Initial Tariff Wave

Among the nations immediately subject to the 10% baseline tariff are:

• Australia
• Britain
• Colombia
• Argentina
• Egypt
• Saudi Arabia

According to U.S. Customs and Border Protection, there is no grace period for shipments arriving after the deadline. However, cargo that was in transit before the deadline is granted a 51-day grace period, allowing it to arrive without penalty before 12:01 a.m. ET on May 27.

Global Reactions and Diplomatic Outreach

China responded swiftly with a 34% tariff on all U.S. goods and announced export curbs on certain rare earth minerals. Beijing stated that “the market has spoken” in opposition to Trump’s new trade strategy.

In a social media post, Trump called the situation an “economic revolution” and promised historic results, encouraging Americans to “hang tough.”

Other global responses included:

• Israeli Prime Minister Netanyahu is expected to visit the White House on Monday.
• Japan’s Prime Minister Shigeru Ishiba is seeking a direct call with Trump to discuss Tokyo’s 24% tariff rate.
• Vietnam, previously a beneficiary of U.S.-China trade tensions, agreed to enter talks with the U.S.
• Taiwan held internal meetings with tech executives after facing a 32% tariff on its products.
• Italy’s Economy Minister warned that retaliation could damage global trade further.

Exemptions and Ongoing Investigations

Canada and Mexico are exempt from these latest tariffs, as they are already subject to a 25% levy related to the fentanyl crisis and rules of origin under the USMCA.

A list of more than 1,000 exempt product categories was also released, covering $645 billion in 2024 imports. Exemptions include:

• Crude oil and petroleum products
• Pharmaceuticals
• Uranium and titanium
• Lumber
• Semiconductors and copper

However, several of these sectors — excluding energy — are now under investigation for potential national security tariffs in the future.

“US Imposes Sweeping New Tariffs Under Trump Trade Shift” “US Imposes Sweeping New Tariffs Under Trump Trade Shift” “US Imposes Sweeping New Tariffs Under Trump Trade Shift” “US Imposes Sweeping New Tariffs Under Trump Trade Shift”