On April 2, former US President Donald Trump announced a sweeping set of import tariffs aimed at correcting trade imbalances and reviving domestic manufacturing. A base tariff of 10% on nearly all foreign imports to the US took effect on April 5, with exceptions for select countries including the UK, Brazil, Singapore, and Australia.

Additionally, around 60 countries identified as “worst offenders” now face higher, targeted tariff rates—such as 20% on the European Union, 46% on Vietnam, and a staggering 104% on Chinese imports after multiple rounds of escalation. China retaliated with similar duties, prompting the US to add further penalties, intensifying the ongoing trade war.

Products from Hong Kong and China priced below $800, previously exempt under the “de minimis” rule, will also be taxed from May 1. However, Canada and Mexico are exempt from the latest tariffs due to previous agreements, although they still face earlier 25% duties.

Key sectors such as pharmaceuticals, semiconductors, energy, copper, and informational materials are exempt, as they are considered vital or not produced domestically. Steel, aluminum, and vehicles continue to be taxed under separate existing tariffs.

Global markets have reacted with uncertainty, as the tariffs threaten to reshape trade dynamics worldwide.

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