President Trump Announces 10% Baseline Tariff; Higher Rates on Certain Countries

On Wednesday, President Trump announced a 10% baseline tariff on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the US, the Associated Press reported (4-2-25 at 4:52 PM EDT).

Charts displayed at the White House showed a 34% tax on imports from China, a 20% tax on imports from the European Union, 25% on South Korea, 24% on Japan, and 32% on Taiwan, among others. Canada and Mexico were not listed.

The 10% baseline tariff will take effect on April 5 and country-specific rates will take effect on April 9, according to a fact sheet released by the White House.

The fact sheet also provided the following information regarding Canada and Mexico:

“For Canada and Mexico, the existing fentanyl/migration [International Emergency Economic Powers Act of 1977 (IEEPA)] orders remain in effect and are unaffected by this order. This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.”

A list of exemptions to the baseline and country-specific rates was released late Wednesday, including lumber and panels. However, these products may still face tariffs under future actions related to the pending Section 232 investigation.