Regulating imports with reciprocal tariffs to address trade practices contributing to persistent annual USA goods trade deficits

On April 2nd 2025, the President of the United States introduced reciprocal tariff rates of 10% across more than 150 countries, effective from 5 April, 2025 as part of his new trade policy. Certain customised reciprocal higher tariffs targeting countries with which the United States has the largest trade deficits will come into force on 9 April 2025 (annex I and II).

These individual tariffs represent a "discounted" rate, calculated based on the cumulative cost of tariffs and protective barriers imposed by each country against the United States.

The plan sets a baseline tariff of 10% for most countries, but certain nations will face higher rates, including the following:

  • China: An additional 34% tax will be applied to the existing 20% tariff on Chinese goods, resulting in an effective tariff rate of 54%.
  • European Union: 20%.
  • Vietnam: 46%.
  • Japan: 24%.
  • India: 26%.

Canada and Mexico were not included in the initial list, as goods complying with the USMCA enter the United States under preferential duty rates. However, products that do not qualify under the USMCA will be subject to a 25% tariff, except for energy and energy resources imported from Canada, which will incur an additional 10% duty.

Furthermore, a 25% tariff on all imported automobiles into the United States will take effect from 3 April 2025.

Exceptions to the reciprocal tariff

It is important to highlight that certain goods will be exempt from the Reciprocal Tariff, including:

  • Articles encompassed by 50 U.S.C. 1702(b).
  • Articles and derivatives of steel and aluminium, as well as automobiles and automotive components already subject to duties imposed under Section 232.
  • Copper, pharmaceuticals, semiconductors, lumber products.
  • Certain critical minerals, energy, and energy-related products that are unavailable domestically within the United States.
  • All articles originating from trading partners subject to the rates established in Column 2 of the Harmonised Tariff Schedule of the United States (HTSUS).
  • Articles that may become subject to future Section 232 tariffs.

Lists of tariffs by country

For a comprehensive list of tariff rates by country, please consult the following links:

  1. List of countries in alphabetical order (annex I).
  2. List of countries ranked by tariff rates, from highest to lowest (annex II).

For further information, please contact our experts.