Trump Imposes 34% Tariff on Chinese Goods, 10% Global Minimum
On Tuesday, President Donald Trump announced sweeping double-digit tariffs on imports from all countries, starting at a minimum threshold of 10 percent.
The administration released a table of rates for 50 different foreign nations' effective tariffs on imported American goods, including the equivalent impact of non-tariff trade barriers. In a press conference, Trump said that the U.S. would charge half of each nation's rate for imports of its goods as a "nice" reciprocal tariff.
The nations facing the steepest tariff hikes are developing countries in the Indo-Pacific, including Cambodia (49 percent), Laos, Madagascar, Vietnam, Myanmar, Sri Lanka and Thailand (36 percent). Cambodia and Sri Lanka have booming garment industries, supplying the U.S. market with low-cost clothing; garment and textile manufacturing accounts for more than half of impoverished Sri Lanka's exports. Thailand and Vietnam have become hubs for Chinese manufacturers looking to source inexpensive labor and evade American tariffs.
Chinese goods will be subject to a rate of 34 percent, higher than many analysts predicted. Taiwan – which supplies almost all advanced semiconductors to the U.S. market – will be subject to a rate of 32 percent, with immediate effects on technology imports. European goods will be subject to a flat 20 percent rate for all member states, from Hungary to Germany.
| Country | Effective tariff on U.S. goods | U.S.A. Reciprocal Tariffs |
| Cambodia | 97% | 49% |
| Laos | 95% | 48% |
| Madagascar | 93% | 47% |
| Vietnam | 90% | 46% |
| Myanmar (Burma) | 88% | 44% |
| Sri Lanka | 88% | 44% |
| Serbia | 74% | 37% |
| Botswana | 74% | 37% |
| Bangladesh | 74% | 37% |
| Thailand | 72% | 36% |
| China | 67% | 34% |
| Taiwan | 64% | 32% |
| Indonesia | 64% | 32% |
| Switzerland | 61% | 31% |
| South Africa | 60% | 30% |
| Pakistan | 58% | 29% |
| Tunisia | 55% | 28% |
| Kazakhstan | 54% | 27% |
| India | 52% | 26% |
| South Korea | 50% | 25% |
| Japan | 46% | 24% |
| Malaysia | 47% | 24% |
| Côte d'Ivoire | 41% | 21% |
| Jordan | 40% | 20% |
| European Union | 39% | 20% |
| Nicaragua | 36% | 18% |
| Israel | 33% | 17% |
| Philippines | 34% | 17% |
| Norway | 30% | 15% |
| Peru | 10% | 10% |
| Costa Rica | 17% | 10% |
| Dominican Republic | 10% | 10% |
| UAE | 10% | 10% |
| New Zealand | 20% | 10% |
| Argentina | 10% | 10% |
| Ecuador | 12% | 10% |
| Guatemala | 10% | 10% |
| Honduras | 10% | 10% |
| Egypt | 10% | 10% |
| Saudi Arabia | 10% | 10% |
| El Salvador | 10% | 10% |
| Trinidad and Tobago | 12% | 10% |
| Morocco | 10% | 10% |
| United Kingdom | 10% | 10% |
| Brazil | 10% | 10% |
| Singapore | 10% | 10% |
| Chile | 10% | 10% |
| Australia | 10% | 10% |
| Turkey | 10% | 10% |
| Colombia | 10% | 10% |
Courtesy of The White House
All states with an effective tariff rate of 20 percent or less for U.S. goods will pay 10 percent. New Zealand, which charges 20 percent on U.S. goods – twice as much as Britain's 10 percent – will be subject to the same 10 percent minimum, with no clear incentive to lower its rate.
Canada and Mexico are excluded from the 10 percent minimum rate, according to the Wall Street Journal.
The tariffs take full effect on April 9, giving time for bilateral negotiations with affected states. A separate tariff of 25 percent on all foreign-built autos takes effect immediately, with repercussions for ro/ro carriers.
The Dow, Nasdaq and S&P 500 all fell in after-hours trading, reflecting investor concerns that the president's tariffs were steeper than expected. Firms most exposed to consumer imports – like Amazon, down 6.5 percent – dropped the most.
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