Tariffs: Where do we stand?
It's nearly a full-time job keeping up with the Trump tariff policy. We'll take a look at where we stand but first, what is a tariff?
In short, a tariff is a tax that the U.S. government imposes on imported goods—products made in other countries and brought into the U.S. For example, let's say a U.S. company imports steel from Canada to make cars. Before a tariff, the company pays $100 per ton of steel. With a 25% tariff, now they pay $125 per ton and the extra $25 goes to the U.S. government.
On April 5th, an effective 10% universal baseline tariff was announced and on April 9th, country-specific reciprocal tariff rates, including the 10% baseline tariff went into effect with the following exceptions:
- Goods in transit on the final mode of transport before the effective date
- Steel, aluminum, and autos and auto parts (subject to Section 232 tariffs)
- Copper and lumber (subject to currently pending Section 232 investigations)
- Pharmaceuticals and semiconductors (considered likely targets for Section 232 investigations)
- Energy and energy products and certain critical minerals
- Any article that “may become subject to duties pursuant to future actions” under Section 232
- Articles covered by the International Emergency Economic Powers Act’s categorical exceptions (e.g., humanitarian donations, informational materials)
Let’s take a look at where each country currently stands.
| Country | Status |
|---|---|
| Australia | Reinstated 25% Section 232 steel tariffs,25% aluminum tariffs. 10% baseline tariff. |
| Bangladesh | 37% reciprocal tariff. 90% of the exports to the U.S. are from the textile and garment sector. |
| Brazil | 10% baseline tariff. |
| Cambodia | 49% reciprocal tariff. The Prime Ministor of Cambodia has offered to cut tariffs on 9 categories of imports from the maximum 35% to 5%. |
| Canada | 25% tariff on noncompliant USMCA goods, except for energy/energy resources and potash (10%). 25% steel and aluminum tariffs. |
| China | The tariffs on China are changing by the day. Currently, the White House has stated that China now faces a tariff rate of 145% on its exports to the United States. Smartphones,computers, memory chips, and several other categories are now exempt from the tariffs. China has retaliated with 125% tariffs on all U.S. goods. |
| European Union | 25% steel and aluminum tariffs and 20% reciprocal tariff. |
| India | 26% reciprocal tariff. |
| Indonesia | 32% reciprocal tariff. India is planning to send a delegation to Washington for negotiations. |
| Japan | 25% steel and aluminum tariffs. 24% reciprocal tariff. Prime Minister Shigeru Ishiba is interested in direct negotiations. |
| Malaysia | 47% reciprocal tariff. Machinery and mechanical appliances, including small electronic components like circuits and semiconductors are among their top exports. |
| Mexico | 0% on USMCA-compliant gods, and 25% emergency tariffs on noncompliant goods except for potash (10%). 25% steel and aluminum tariffs. |
| Singapore | 10% baseline tariff. Prime Minister Gan Kim Yong indicated that Singapore will not impose retaliatory tariffs. |
| Sri Lanka | 44% reciprocal tariff. |
| South Africa | 30% reciprocal tariff. |
| South Korea | 25% reciprocal tariff. |
| Switzerland | 31% reciprocal tariff. |
| Thailand | 36% reciprocal tariff. |
| United Kingdom | 10% baseline tariff and 25% steel and aluminum tariffs. |
| Vietnam | 46% reciprocal tariff. Vietnam has indicated that they want to cut their tariffs down to zero if they are able to make an agreement. |
How will this impact my budget?
In the short-term, prices on products derived from Steel and Aluminum are likely to increase. Products like:
- Automobiles & Auto Parts
- Cars, trucks, and SUVs
- Brake systems, exhausts, frames, engine components
- Home Appliances
- Washing machines
- Dryers
- Refrigerators
- Dishwashers
- Microwaves
- Tools & Hardware
- Saws, wrenches, screwdrivers
- Nails, bolts, hinges
- Furniture
- Metal bed frames
- Office chairs
- Patio furniture
- Sporting Goods
- Bicycles
- Weightlifting equipment
- Golf carts
- Beverage Cans & Packaged Foods
- Soda cans
- Beer cans
- Canned soups and vegetables
- Foil food packaging
- Consumer Electronics
- Laptops
- Smartphones
- Flat-screen TVs
- Game consoles
- Travel Goods
- Luggage with aluminum frames
- Camping gear
- Lightweight Vehicles & Equipment
- Bicycles
- Scooters
- Lawn mowers
- Home Goods
- Aluminum foil
- Cookware (pans, pots)
- Blinds and window frames
Additional products like clothing could be impacted as well as by the tariff on Bangladeshi imports. Stay tuned.
-Patrick Lysaght, Founder