On April 5, U.S. Customs agents began enforcing a sweeping 10% tariff on imports from numerous countries, marking a seismic shift in global trade policy under former President Donald Trump. This “baseline” tariff, effective at U.S. ports and customs warehouses, signals a departure from the post-World War II system of mutually agreed tariff rates.
The announcement, made on April 2, sent shockwaves through global markets, erasing $5 trillion in stock market value within two days. Oil and commodity prices plummeted, while investors sought refuge in government bonds.
Countries initially impacted include Australia, Britain, and Saudi Arabia, with no grace period for cargoes already en route. However, goods loaded before April 5 have a 51-day window to arrive tariff-free. Higher tariffs, ranging from 11% to 50%, are set to take effect on April 9, targeting imports from the EU, China, and Vietnam.
Exemptions apply to goods subject to national security tariffs, including steel, aluminum, and semiconductors. The administration has also released a list of over 1,000 product categories exempted from the tariffs, valued at $645 billion in 2024 imports.
This policy shift underscores Trump’s rejection of traditional trade norms, with significant implications for global economic stability.
