The United States has officially begun collecting the 10% ‘baseline’ tariffs imposed by President Donald Trump on exports from selected countries. According to a Reuters report, the tariffs came into effect on Saturday, with U.S. administration officials initiating the collection process.
Trump revoked the previous export tariffs for countries with trade relations with the U.S. and announced new tariffs during a press conference held in the White House Rose Garden on April 2 at 4 p.m. local time.
Economists stated that the new tariff policy was designed based on trade imbalances. Countries that import more from the U.S. than they export to it have been subjected to a 10% export tariff. Trump referred to this as the ‘baseline’ tariff.
However, countries that import less from the U.S. are facing even higher tariff rates. Vietnam has been hit the hardest, with a 46% tariff.
Only 12 countries are subject to the 10% baseline tariff:
United Kingdom
Singapore
Brazil
Australia
New Zealand
Turkey
Colombia
Argentina
El Salvador
United Arab Emirates
Egypt
Saudi Arabia
For all other countries, higher tariffs will be collected starting April 9.
Kelly Ann Shaw, Trump’s former trade adviser and now a trade attorney at Hogan Lovells, told Reuters, “I’ve never seen such a massive single trade action in my life. It’s truly significant and wide-ranging, and it could fundamentally alter nearly 300 years of international trade since American independence.”
The U.S. stock market has also felt the impact of Trump’s new trade policy. The share prices of several major companies have dropped, wiping out at least $5 trillion from the market.