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According to the new U.S. trade policy announced by President Donald Trump on Wednesday, the amount a country pays in tariffs will depend on the type of goods being exported and their origin, says GTRI founder Ajay Srivastava.
Firstly, some goods will face zero tariffs, these include essential and strategic items such as pharmaceuticals, semiconductors, copper and energy products like oil, gas, coal and LNG. Only the non-U.S. portion of products having 20 percent or more U.S.-made content will be taxed. Also, low-value shipments under USD 800, which mainly cover e-commerce orders, will be taxed at old tariff rates. Secondly, a 25 percent tariff will apply to key industrial sectors, such as aluminium, steel, automobiles, and auto parts, and will apply to most countries. For most other goods, there will now be a two-layered tariff system. All imports are first subject to a 10 percent baseline tariff starting April 5, 2025. Then, beginning April 9, 2025, certain countries will face country-specific tariffs. Country-specific tariffs will replace baseline tariffs after April 9th. Starting April 9, goods from India could be subject to tariffs as high as 27 percent. However, pharmaceuticals, semiconductors, copper, and energy products remain exempt from any new tariffs. "The actual tariff a country faces depends on what it's exporting and how its trade practices align with U.S. economic and national security interests," says Ajay Srivastava Executive Order-Sec. 2. The Reciprocal Tariff Policy reads, "The additional ad valorem duty on all imports from all trading partners shall start at 10 percent and shortly thereafter, the additional ad valorem duty shall increase for trading partners enumerated in Annex I to this order at the rates set forth in Annex I to this order. These additional ad valorem duties shall apply until such time as I determine that the underlying conditions described above are satisfied, resolved, or mitigated". (ANI)
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