President Trump said he will levy import taxes on China, Japan and others equal to half of what they charge the U.S., based upon White House Calculations. Essentially the U.S. will implement a universal baseline tariff of 10%, effective April 5, and increased tariff rates on various countries, he announced at the White House April 2.
The president said that certain trading partners such as China, Japan and the European Union will be subject to higher duties than the baseline rate, effective April 9. Those countries will face levies equal to half of a calculated total of trade barriers, including tariffs and value-added taxes, Trump said is imposed on the U.S. by each trading partner.
For example, the U.S. will charge China a 34% tariff based on a calculated 67% charge the country has placed on the U.S. through tariffs and other trade actions. Meanwhile, Japan will be charged 24%, the EU will be charged 20% and Vietnam will be charged 46%.
Trump has said the tariffs are necessary to rebalance global trade and rebuild domestic manufacturing. He has singled out China as "the biggest abuser of them all" and criticized Beijing for increasing its own tariffs in retaliation.
The tariff rates will only apply to non-U.S. content of finished goods if at least 20% of the value of the product was made in the U.S., per an executive order Trump signed enacting the new duties.
Previously enacted tariffs on Canada and Mexico will not be affected by the new tariffs, per a White House fact sheet. This includes the pause on duties for imported goods compliant with the United States-Mexico-Canada Agreement.
The Trump administration’s decision softens the blow of what were initially promised to be universal reciprocal tariffs.
In February, Trump directed federal agencies to examine any non-reciprocal trade agreements the U.S. was subject to, and to submit proposed remedies within 180 days.
Although the memorandum called for proposed remedies, Trump initially said he would match tariff rates of other trading partners as part of this reciprocal tariff policy.
“In other words, they charge us a tax or tariff, and we charge them the exact same tax,” Trump said in an Oval Office news conference in February.
Since the announcement, global markets continue plunging and fears of a recession have grown.
Reaction to President Trump’s announcement of sweeping tariffs on imports has been mixed. Some food industry groups were critical of the president’s announcement of sweeping tariffs on imports, which have sparked threats of retaliation and which some analysts say will hike prices for consumers. Others have suggested they understand the short-term pain but long-term gain that could come from such a dramatic policy shift.
Here how some food industry associations and lobby groups have responded to policies involving tariffs:
“We appreciate and support the Trump administration’s desire to protect American jobs, boost our manufacturing sector and lower grocery prices – goals we are committed to working with President Trump to achieve,” says Leslie Sarasin, President and CEO of FMI – the Food Industry Association.
“While we have witnessed several positive steps that have reduced unnecessary regulatory burdens on our industry, we are concerned that today’s tariff announcement could bring rising prices, a squeeze on household budgets and reduced competitiveness for American companies relative to international competitors,” continues Sarasin. “The uncertainty and inflationary pressures created by reciprocal tariffs are a major worry for American consumers and our food industry member companies that operate on slim 1.6% retail and 7.5% food manufacturing net margins.” View Statement by FMI.
"Broad and prolonged tariffs on our top trading partners and growing markets will risk undermining our investments, raising costs for American businesses and consumers, and creating uncertainty for American dairy farmers and rural communities," says Becky Rasdall Vargas, Senior Vice President of Trade and Workforce Policy at the International Dairy Foods Association. The IDFA represents the nation’s dairy manufacturing and marketing industry, which supports more than 3.2 million jobs that generate $49 billion in direct wages and $794 billion in overall economic impact. View Statement by the IDFA.
It's important to note that some imports are exempt from the current round of tariffs, such as fresh fruit and vegetable imports from Mexico and Canada.
"The International Fresh Produce Association (IFPA) appreciates the administration’s decision to allow the continued trade of specialty crops, including fruits and vegetables, covered under the U.S.-Mexico-Canada Agreement (USMCA),” says Cathy Burns, CEO of the IFPA.
"Fresh fruits, vegetables, and florals are among the most highly traded commodities across North America and beyond,” she continues. “Reducing trade barriers ensures that consumers continue to have access to fresh, affordable produce and floral products while supporting the growers and businesses that sustain the industry.”
"However, IFPA remains concerned about the broader application of tariffs on global trading partners and the resulting disruptions to supply chains, market stability, and food prices worldwide,” she concludes. “The global trade of fresh produce is essential to the health and well-being of people in every nation. Targeted use of tariffs can be a tool for addressing inequities between trading partners, but broad application of this blunt tool often disrupts markets, raises consumer costs, and places unnecessary strain on growers and producers across the supply chain.” View Statement by IFPA.
Those more critical of the policies note that such products as olive oil, cheese and alcoholic beverages including wine and beer from European nations will get more expensive under the new tariffs. The United States was the largest export market for combined EU goods in 2024, taking more than 20% of the bloc’s exports, according to the EU Commission.
Data from the Foreign Agricultural Service of the US Department of Agriculture shows that, over the past two decades, U.S. food manufacturers have increased European imports by value by nearly 400%, from $5.8 billion in 2005 to more than $20 billion last year. Top import categories include alcoholic beverages, chocolate, cheese, olive oil and fruit and vegetable preparations.
On the export side, the EU and other nations have promised strong retaliation to added US levies, placing US exports at risk. The EU was the second-largest export market for US goods last year, taking more than 13% of all US products shipped overseas. Top US food and agricultural goods sent across the Atlantic include tree nuts ($2.72 billion), soybeans ($2.43 billion), alcoholic beverages ($1.23 billion) and prepared foods ($455 million), according to the FAS.
“We are united in our opposition to the imposition of tariffs and clear in our view that there are no winners in a trade war,” said a joint statement by International Beverage Alcohol Associations in response to U.S. tariffs imposed on certain EU-distilled spirits and wines. “Our 15 international beverage alcohol associations today sent a letter to the U.S. administration and the EU Commission calling for an immediate end to tariffs on distilled spirits and wines and welcoming their statements of their shared intent to reach negotiated solutions to the disputes. Our industries are collateral damage in trade disputes that have nothing to do with the beverage alcohol sector. This new round of tariffs will further damage a transatlantic industry that has already been negatively impacted by the EU’s retaliatory tariff on American Whiskey.” View Statement by several beverage alcohol trade associations.
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