U.S. customs officials began implementing President Trump’s unilateral 10% tariff on imports from various countries on Saturday, with increased levies on goods from 57 major trading partners expected to follow next week. This initial “baseline” tariff took effect at 12:01 a.m.
ET (0401 GMT), marking a significant departure from the post-World War Two system of mutually agreed upon tariff rates. Kelly Ann Shaw, a trade attorney and former White House adviser, described this as “the single biggest trade action of our lifetime” and predicted an evolution of tariffs as countries negotiate lower rates.
The announcement, made on Wednesday, sent shockwaves through global stock markets, erasing $5 trillion in value from S&P 500 companies within two days. Oil and commodity prices fell sharply as investors sought the security of government bonds.
Countries affected by the new 10% tariff include Australia, Britain, Colombia, Argentina, Egypt, and Saudi Arabia. While no grace period was given for shipments arriving at midnight, a 51-day grace period was offered for cargo already in transit before the new tariff’s implementation, with a deadline for arrival set for May 27.
On Wednesday, Trump’s more severe “reciprocal” tariffs of 11% to 50% will come into effect, with European Union imports facing a 20% tariff and Chinese goods a 34% levy, raising total tariffs on Chinese products to 54%. In response, China stated that the market had reacted negatively to the tariffs and implemented its countermeasures, including a 34% tax on U.S. imports.
While some world leaders sought to negotiate with Trump to mitigate the economic impact, others prepared for potential counteractions. Canadian and Mexican goods were exempt from the new duties due to existing tariffs linked to the U.S. fentanyl crisis.
Goods subject to separate national security tariffs, such as steel, aluminum, and certain automotive parts, are also excluded from this latest wave of tariffs. The Trump administration has made it clear that a review is ongoing for multiple product categories concerning national security.