Source: Supply Chain Dive; Logfret U.S.A.
Date: 2nd April 2025

The U.S. President said based on White House calculations, he will levy import taxes on China, Japan, and others equal to half of what they charge the U.S.

The U.S. President announced that the U.S. will implement a universal baseline tariff of 10%, effective April 5, and increase tariff rates on various countries at the White House on 2nd April 2025.

The U.S. President said that certain trading partners such as China, Japan, and the European Union will be subject to higher duties than the baseline rate, effective April 9. Those countries will face levies equal to half of a calculated total of trade barriers, including tariffs and value-added taxes, the U.S. President said are imposed on the U.S. by each trading partner.

For example, the U.S. will charge China a 34% tariff based on a calculated 67% charge the country has placed on the U.S. through tariffs and other trade actions. Meanwhile, Japan will be charged 24%, the EU will be charged 20%, and Vietnam will be charged 46%.

The tariff rates will only apply to non-U.S. content of finished goods if at least 20% of the value of the product was made in the U.S., per an executive order the U.S. President signed enacting the new duties.

Previously enacted tariffs on Canada and Mexico will not be affected by the new tariffs, per a White House fact sheet. This includes the pause on duties for imported goods compliant with the United States-Mexico-Canada Agreement.

Additionally, goods such as steel, aluminum, cars, automotive parts, copper, pharmaceuticals, and semiconductors are not subject to the new duties. Previously enacted tariffs on steel and aluminum, as well as those on cars and automotive parts, will remain in effect.

The Trump administration’s decision softens the blow of what were initially promised to be universal reciprocal tariffs.

Click here for the 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS).

In February, the U.S. President directed federal agencies to examine any non-reciprocal trade agreements the U.S. was subject to, and to submit proposed remedies within 180 days.

Although the memorandum called for proposed remedies, the U.S. President initially said he would match tariff rates of other trading partners as part of this reciprocal tariff policy.

“In other words, they charge us a tax or tariff, and we charge them the exact same tax,” the U.S. President said in an Oval Office news conference in February.