After 4PM in the White House Rose Garden on April 2, US President Donald Trump announced the US will implement a minimum 10% tariff on all countries, effective from April 5, while higher reciprocal rates will go into effect April 9. according to the White House Fact Sheet.
Additionally, a 25% tariff on all foreign-made automobiles was announced.
The US Trade Representative (USTR) has calculated higher reciprocal tariff rates using a formula that centers on the trade deficit between the US and its trading partners; as well as each country’s monetary tariffs, non-monetary trade barriers, currency manipulations, etc. USTR leaders assigned each trading partner a tariff percentage and will implement a tariff worth half of the designated percentage, or at least 10%.
Reciprocal tariffs are effective from April 9 “until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” read the fact sheet.
As for Canada and Mexico, goods which adhere to the United States-Mexico-Canada Agreement (USMCA) will still be traded under the terms of that agreement. While non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.