It is 10%.
The first phase of President Donald Trump’s ambitious tariff policy went into effect at 12:01 a.m. on April 5, marking a significant shift in U.S. trade practices. The new policy implements a 10 percent baseline tariff on all imports, regardless of their country of origin, a sharp increase from the previous average tariff rate of 2.5 percent. This change will impact the $3 trillion worth of goods the U.S. imports each year.
Trump announced the tariff plan during a “Make America Wealthy Again” event at the White House on April 2, where he outlined his intention to reverse decades of trade deficits and address perceived unfair global trade practices. He criticized foreign nations for exploiting U.S. resources, blaming both allies and adversaries for undermining American industries and workers.
The president also invoked the International Emergency Economic Powers Act of 1977, which allows him to impose trade restrictions in response to national security threats or foreign economic actions. This legislation has been used primarily to enforce tariffs, and Trump’s policy also includes higher reciprocal tariffs on countries with long-standing trade deficits. Countries such as Vietnam, China, Taiwan, India, and Japan will face tariffs as high as 50 percent on various goods. However, some products, including automobiles, aluminum, and steel, are exempt due to existing tariffs under Section 232.
China has already retaliated by confirming a 34 percent tariff on U.S. goods, effective April 10. In response, Trump expressed confidence that the Chinese government was “panicked” by the new tariffs. Other regions, including the European Union and Canada, have also pledged to introduce their own countermeasures. Notably, Canada and Mexico will remain under the previous 25 percent tariff regime, which is linked to concerns over illegal immigration and drug trafficking.
Economic experts predict that the average tariff rate on imports could reach up to 16.5 percent, the highest level since 1937, though some expect slightly lower rates as negotiations with trade partners progress. However, further tariff increases, particularly in sectors like lumber, pharmaceuticals, and semiconductors, are anticipated. Meanwhile, the United Nations Trade and Development agency warned that these tariffs could disproportionately affect vulnerable populations and global economic stability, emphasizing the need for cooperation rather than escalation.
