The U.S. tariff overhaul that began earlier this month took another step forward on April 5, 2025, as new baseline tariffs officially went into effect. These measures, aimed at addressing trade deficits and reshaping global commerce, have already triggered market volatility and international countermeasures.

Key Tariff Changes

10% Baseline Tariff on Imports

A 10% tariff now applies to most imported goods entering the United States. This baseline tariff is in addition to existing duties, including Section 201, Section 301, and antidumping/countervailing duties.

Country-Specific Tariffs Coming Soon

On April 9, higher tariffs will be imposed on countries with large trade surpluses against the U.S.. Some nations will continue under the 10% baseline, while others will face steeper duties.

Exemptions and Special Cases

Certain goods remain exempt from the new tariffs, including:

• Steel and aluminum, which are already subject to 25% tariffs.
• Automobiles and auto parts, which saw a 25% tariff implemented on April 3.
• Critical minerals, pharmaceuticals, lumber, and semiconductors, which may be subject to future tariffs but are currently excluded.

Global Reactions and Retaliation

The international response has been swift:

• Canada and Mexico remain exempt from both the April 5 and April 9 tariffs.
• China has announced a 34% tariff on U.S. goods, effective April 10.
• The European Union is preparing its own countermeasures, with tariffs expected to be finalized soon.

Economic Impact and Market Response

The stock market continues to react negatively, with Wall Street experiencing sharp declines. Businesses are scrambling to adjust their supply chains, and consumers may soon feel the effects through higher prices on imported goods.

What’s Next?

As the world adapts to this new tariff landscape, trade negotiations and diplomatic efforts are expected to intensify. Importers and exporters should closely monitor developments and consider strategic sourcing to mitigate rising costs.

Stay tuned for further updates as the global trade environment continues to evolve.