US customs officials started enforcing unilateral 10% tariffs on imports from several countries on Saturday under President Donald Trump.
The initial 10% “baseline” tariffs took effect at 12:01am (0401 GMT) at American ports, airports, and customs facilities, entirely dismissing the tariff rate system from World War II that Trump previously agreed to.
“This represents the largest trade measure of our lifetime,” stated Kelly Anne Shaw, a trade attorney at Hogan Lovells and former trade advisor to Trump during his first administration.
During an event at the Brookings Institution on Thursday, it was expressed that the aim is for tariffs to evolve as the nation seeks to negotiate lower rates. “Nonetheless, this is monumental. It represents a significant seismic shift in international trade for every nation.”
Trump’s tariff announcement on Wednesday rattled the global stock market profoundly, causing the market capitalization of S&P 500 firms to drop by Friday’s close. Investors moved towards the security of government bonds, leading to a steep decline in oil and commodity prices.
Countries initially affected by the 10% tariffs include Australia, the UK, Colombia, Argentina, Egypt, and Saudi Arabia. The US Customs and Border Protection has stated there is no grace period for cargo that was already at sea as of Saturday midnight.
However, a recent announcement from the agency granted a 51-day grace period for cargo loaded onto any vehicle by 12:01am on Saturday, which must arrive by 12am on May 27th to evade the 10% fee.
At the same time on Wednesday, Trump’s increased “mutual” tariff rates ranged from 11% to 50%. A 20% tariff will apply to European Union imports, while goods from China will face a 34% tariff, resulting in a total tax of 54% for China.
Vietnam, which gained from a US supply chain moving away from China following Trump’s initial trade conflict with Beijing, faced 46% tariffs and agreed to negotiate his deal with Trump on Friday.
Canada and Mexico have been exempt from Trump’s recent requirements since they are subject to 25% tariffs due to the US fentanyl crisis on products that do not conform to the US Mexican-Canada Rules of Origin.
Trump has excluded items subject to additional national security tariffs, which include steel and aluminum, vehicles, and auto parts.
His administration has also provided a list of over 1,000 product categories that are exempt from tariffs. Imports in 2024 reached a total of $645 million, which encompasses crude oil, petroleum products, other energy imports, pharmaceuticals, uranium, titanium, wood, semiconductors, and copper.
Except for energy, the Trump administration is examining several of these sectors for potential additional national security tariffs.
