To counter large trade imbalances, President Trump on Wednesday announced a new 10% across-the-board tariff in addition to reciprocal duties that will apply to specific trade partners, including China, the European Union, Japan and South Korea.
A statement published Wednesday by the United States Trade Representative explained the Trump administration calculated its new tariffs primarily based on existing trade balances. Countries running a trade surplus with the U.S. faced a flat 10% rate regardless, as did nations where trade was roughly even.
China is set to face reciprocal duties of 34%, while the European Union will face a rate of 20%, Japan 24%, India 26% and South Korea 25%. These duties include the 10% baseline tariff. The new across-the-board tariff will kick in on April 5. The higher duties on targeted countries — which replace, rather than add on top of the 10% rate — are due to kick in on April 9, the White House said. The U.S. will continue its USMCA exemption for Canada and Mexico tariffs and will not be subject to the reciprocal tariffs.
The latest measures bring average U.S. tariffs on all Chinese products to as high as 54-65%, according to economists. That rate includes existing tariffs from the first Trump term that were maintained by the Biden administration.
China today announced it would add 34% tariffs on all imports from the U.S. beginning next week in response to the reciprocal tariffs. The tariff is set to kick in April 10, according to a statement from China’s Ministry of Finance. To date, other U.S. trading partners have held off from announcing retaliatory tariffs amid hopes of further negotiations, with the European Union nevertheless voicing a readiness to respond.
“We support the administration’s goals of leveling the playing field to achieve fair trade, and we’re hopeful for a swift resolution,” said NCC spokesperson Tom Super. “Trade is an important component of the U.S. broiler industry as we export about 15 percent of production to other countries. We are monitoring the situation closely for retaliatory measures and how they might affect our members.
“The bottom line for the American consumer is that this should have little to no effect on their chicken sandwich or wings, as more than 99 percent of the chicken we eat in America is hatched, raised and harvested right here in the USA.”
