As President Trump’s “reciprocal tariffs,” targeting imports from nearly every country became effective on April 5, and further increased for a significant number of countries today, April 9, countries around the world are beginning to formulate their responses to various tariff measures imposed by President Trump over the last month.
President Trump’s “reciprocal” tariff announcement initially established a 34% tariff on all Chinese imports (effective April 9), on top of normal customs duties, Section 301 duties, and the 20% tariffs already imposed on Chinese goods pursuant to the International Economic Emergency Powers Act (“IEEPA”). In response to the reciprocal tariff announcement, on April 4, the Chinese government announced it would impose 34% tariffs on U.S. goods entering China. In response to China’s 34% retaliatory tariff, on April 8, President Trump announced an additional 50% tariffs on all Chinese imports effective April 9, bringing the total rate imposed under IEEPA alone to a staggering 104%. The new executive order also increases the tariffs on de minimis packages from China that will go into effect May 2, bringing the rates up to 90% ad valorem or $75 per package. The Chinese government was quick to respond in kind, announcing an additional 50% tariffs on U.S. goods this morning (April 9), bringing Chinese tariffs on imports of U.S. goods to a total 84%. Providing additional color on the back-and-forth nature of increasing tariffs, China stated that it will “fight to the end” in response to President Trump’s tariffs.
In addition to China, other trading partners are taking retaliatory measures against imports from the United States as well. In response to the 25% tariffs President Trump imposed on automobiles and certain auto parts imported into the U.S. pursuant to Section 232, Canada imposed, effective April 9, 25% tariffs on non-USMCA compliant vehicles from the United States. Canada’s retaliatory tariffs will follow the U.S.’s novel approach on autos, applying 25% tariffs on non-Canadian and non-Mexican content of USMCA compliant vehicles. Canada’s tariffs do not apply to auto parts at this time; the U.S. tariffs on auto parts will enter into effect upon notice in the Federal Register, with a deadline of May 3. Canada previously imposed 25% tariffs on many U.S. goods, including many steel and aluminum products and consumer goods.
Across the Atlantic, the European Union also voted to impose 25% tariffs on U.S. goods today, April 9. The list that was confirmed by vote has not been made public, but previous versions prepared by the European Union targeted approximately € 21 billion in goods from the U.S., ranging from steel and aluminum to agricultural products such as almonds and soy beans to consumer products like dental floss and jeans. Notably, alcoholic beverages, which were on the list originally circulated by the European Union, have been removed after concerns from France, Italy, and Ireland about a 200% retaliatory tariff on wines and other alcohols threatened by President Trump. The first round of retaliatory tariffs will take effect on April 15, with additional tariffs to be implemented in a phased approach.
It remains to be seen whether and how long President Trump’s “reciprocal” tariffs will remain in effect, with press reports indicating some countries are already negotiating with the administration to reduce or eliminate their tariff rates. With significant market volatility and mounting pressure from Congress, it is possible that negotiations could move quickly. However, in testimony before the Senate Finance Committee on Thursday, April 8, Ambassador Greer made clear there are no current plans for an exclusion process. President Trump has also defended his tariff plans and has made no indication that he is ready to back down.
