U.S TARIFFS = Global Shakeup

The Trump administration’s latest trade overhaul is reshaping global trade, impacting countries without barriers, as well as those that do employ protectionist practices.

On 2 April 2025, President Trump introduced a global reciprocal tariff system targeting roughly 60 countries, with a new 10% baseline duty on all imports effective 5 April. But for China, the penalties went far deeper: tariffs climbed rapidly to a staggering 125% by 10 April, supported by a suite of executive orders and a hardline approach to trade retaliation.

This system is designed to ensure that countries imposing tariffs on U.S. exports are met with equivalent or greater duties when selling into the American market. While positioned as a “global reset,” the policy is sharply focused on curbing China’s access to the U.S. consumer base and dismantling long-standing cost advantages in eCommerce and manufacturing.

The Policy Timeline

2 Apr: President Trump unveils 34% reciprocal tariff on 60 countries, citing unfair trade practices.
5 Apr: Global 10% baseline tariff takes effect—excluding China, which is subject to separate treatment.
8 Apr: After Chinese retaliation, U.S. hikes China-specific tariff to 84% and updates low-value import rules.
9 Apr: Tariff raised again to 125% on Chinese-origin goods; De Minimis changes confirmed.
10 Apr: 125% duty becomes law.
2 May End of De Minimis for China and Hong Kong.
9 July: Reciprocal tariffs in force

In tandem with these tariffs, the White House issued orders that will formally end De Minimis benefits for Chinese and Hong Kong shipments on 2 May, layering on a 120% duty for parcels under $800 and a steep postal handling fee.

These combined actions represent one of the most aggressive trade stances by the U.S. in modern history and are already prompting exporters to explore workarounds and origin shifts, particularly via Southeast Asia and Mexico.

Strategic Implications

• U.S. importers face significant cost inflation, especially in consumer electronics, apparel, and general merchandise.
• Asian suppliers are seeking alternative production hubs to sidestep China-specific tariffs.
• Trade partners impacted by the baseline tariff may seek exemptions or challenge the policy through WTO mechanisms.

If you’d like to review any potential impact of tariffs on your supply chain, assess your exposure, or explore strategic options, we’re here to help.

Make informed decisions with our compliance and regulatory knowledge. EMAIL our customs expert Michelle Redman for advice and insights.