World

US starts collecting Trump's 10% tariff, smashing global trade norms

Countries like Australia, Britain and Saudi Arabia face immediate 10% tariff while China says 'market has spoken' on Trump’s tariffs

Updated 1 year ago · Published on 06 Apr 2025 8:58AM

US starts collecting Trump's 10% tariff, smashing global trade norms
Tariffs impact global markets, causing US$5 trillion loss in S&P 500 value – April 6, 2025

UNITED STATES customs agents began collecting President Donald Trump's unilateral 10% tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week.

Reuters reported today, the initial 10% "baseline" tariff paid by U.S. importers took effect at U.S. seaports, airports and customs warehouses at 12:01 a.m. ET (0401 GMT), ushering in Trump's full rejection of the post-World War Two system of mutually agreed tariff rates.

"This is the single biggest trade action of our lifetime," said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House trade adviser during Trump's first term.

Shaw told a Brookings Institution event on Thursday that she expected the tariffs to evolve over time as countries seek to negotiate lower rates. "This is a pretty seismic and significant shift in the way that we trade with every country on earth," she added.

Trump's Wednesday tariff announcement shook global stock markets, wiping out $5 trillion in value for S&P 500 index (.SPX), opens new tab companies by Friday's close, a record two-day decline. Driven by recession fears, prices for oil and commodities plunged, while investors fled to the safety of government bonds.

Among the countries first hit with the 10% tariff were Australia, Britain, Brazil, Colombia, Argentina and Saudi Arabia despite their having goods trade deficits with the U.S. last year. White House officials have said many countries would run larger deficits with the U.S. if their policies were fairer.

A U.S. Customs and Border Protection bulletin provided a 51-day grace period, opens new tab for cargoes loaded or in transit to the U.S. before 12:01 a.m. ET Saturday. These cargoes need to arrive by May 27 to avoid the 10% duty.

Trump's higher "reciprocal" tariff rates of 11% to 50% are due to take effect on Wednesday at 12:01 a.m. ET. European Union imports will face a 20% tariff, while Chinese goods will be hit with a 34% tariff, bringing Trump's total new levies on China to 54%.

Beijing on Saturday said, "The market has spoken" in rejecting Trump's tariffs. China applied a slew of countermeasures, including extra levies of 34% on all U.S. goods and export curbs on some rare earth minerals. – April 6, 2025

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