US begins imposing new 10% tariffs under Trump policy, sparking global concerns
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WASHINGTON (Reuters) – The U.S. administration on Saturday began implementing President Donald Trump’s new tariff policy, imposing a 10% tax on all imports from many countries, marking a major shift in global trade policy.
Customs agencies at seaports, airports and warehouses across the United States began collecting the tariffs at 12:01 a.m. ET (0401 GMT), despite concerns from the international economic community.
Starting next week, the higher tariffs – ranging from 11% to 50% – will be applied to goods from 57 larger trading partners, including China, the EU and Vietnam.
“This is a major geopolitical shift in global trade,” Kelly Ann Shaw, a former White House trade adviser, said at a Brookings Institution event. “This is more than just a new tax policy. This is a complete reshaping of how the United States trades with the world.”
Trump’s tariff announcement on Wednesday sent global markets reeling. The S&P 500 lost nearly $5 trillion in value in just two trading sessions, oil and other commodities plunged, and government bonds became a safe haven for investors.
The initial list of countries hit with the 10% tariff included Australia, the United Kingdom, Colombia, Argentina, Egypt and Saudi Arabia. US customs has said there will be no grace period for goods in transit, except for shipments that boarded ships or planes before the deadline, and arrived in the US before May 27.
The higher “return” tariffs will kick in next Wednesday. Goods from the EU will be taxed 20%, and China 34% – bringing the total to 54%. Vietnam – the biggest beneficiary of the shift in supply chains away from China – will be subject to tariffs of up to 46%, but has agreed to negotiate with Washington.
Canada and Mexico, on the other hand, are exempt from the tariffs this time because they were already subject to 25% tariffs related to the fight against fentanyl, and are still bound by the rules of origin in the USMCA.
The Trump administration has excluded a number of strategic goods, including steel, aluminum, cars, components and more than 1,000 other products – equivalent to about $645 billion in imports in 2024. These include energy, pharmaceuticals, uranium, titanium, lumber, semiconductors and copper.
However, according to sources in the White House, many of these sectors may continue to be investigated for additional tariffs on national security grounds.
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