Department of Research, Studies and International News 10-04-2025

In a significant shift in trade policy, Donald Trump announced on April 9, 2025, a 90-day suspension of most tariffs, implementing a universal 10% tariff on imports from countries that have not engaged in retaliatory measures against the United States. Concurrently, tariffs on Chinese imports were elevated to 125%.

Trump’s decision to adjust tariffs stems from his commitment to an “America First” trade policy, aiming to address perceived inequities in international trade and bolster domestic industries.

The following outlines the tariff rates imposed by the United States on various countries as of April 2025:

• China: Tariffs on Chinese imports have been raised to 125%, reflecting the administration’s stance against China’s trade practices.
• European Union (EU): Imports from EU member countries are subject to a 20% tariff.
• United Kingdom: Goods imported from the UK face a 10% tariff.
• Canada: A 10% tariff is applied to Canadian energy exports, while all other Canadian goods are subject to a 25% tariff.
• Mexico: Mexican exports to the U.S. are subjected to a 25% tariff.
• Australia: Australian imports incur a 10% tariff.
• Japan: Japanese goods are subject to a 24% tariff.
• South Korea: Imports from South Korea face a 25% tariff.
• India: Indian exports to the U.S. are subjected to a 26% tariff.
• Pakistan: Pakistani goods are subject to a 29% tariff.
• South Africa: Imports from South Africa face a 30% tariff.
• Switzerland: Swiss goods are subject to a 31% tariff.
• Taiwan: Imports from Taiwan face a 32% tariff.
• Indonesia: Indonesian goods are subject to a 32% tariff.
• Thailand: Thai exports to the U.S. are subjected to a 36% tariff.
• Bangladesh: Bangladeshi goods face a 37% tariff.
• Sri Lanka: Imports from Sri Lanka are subject to a 44% tariff.
• Vietnam: Vietnamese goods incur a 46% tariff.
• Cambodia: Cambodian exports to the U.S. are subjected to a 49% tariff.

These tariffs are part of the administration’s broader strategy to address trade imbalances and protect domestic industries.

In retaliation to the U.S. tariff hike, China announced an increase in tariffs on U.S. goods from 34% to 84% and included 12 American companies in its export control list, restricting the sale of products with both civilian and military applications. The Chinese government condemned the U.S. actions as a “repeated error” and expressed its determination to “go all the way” in the trade conflict.

The escalation of tariffs between the U.S. and China has raised concerns about a potential global trade war. Analysts warn that the increased tariffs could lead to higher inflation in the U.S. and disrupt global markets. The World Trade Organization has cautioned that such tensions could reduce trade between the two largest economies by up to 80%.

Market Reactions

Following the announcement of the tariff adjustments, U.S. stock markets experienced significant volatility. The Dow Jones Industrial Average surged by 7.9%, closing at an all-time high of 40,608.45 points, marking its largest single-day points increase. This surge reflects investor optimism regarding the temporary suspension of tariffs on most countries and the potential for favorable trade negotiations.

Conclusion

The recent tariff adjustments by the United States represent a pivotal moment in international trade relations. While the 90-day suspension offers a window for negotiation with most trading partners, the significant increase in tariffs on Chinese imports underscores ongoing tensions between the world’s two largest economies. The global community remains watchful, hoping for resolutions that will stabilize markets and promote equitable trade practices.