U.S. Announces New Tariff Policy

On 2nd April 2025, President Donald Trump unveiled a new trade policy that adjusts tariffs based on product type and country of origin. The policy, outlined in Executive Order-Sec. 2, The Reciprocal Tariff Policy, introduces a tiered tariff system.

Key Points

Zero Tariffs on Essential Goods: Pharmaceuticals, semiconductors, copper, and energy products (oil, gas, coal, LNG) will be exempt from tariffs.
U.S. Content Rule: Products with at least 20% U.S.-made content will have tariffs applied only to the non-U.S. portion.
Postal Shipments Taxed: Imports valued at or under $800 sent through the postal network will face a 30% tariff or $25 per item, increasing to $50 per item after June 1.
25% Tariff on Industrial Goods: Sectors such as aluminum, steel, automobiles, and auto parts will be subject to a 25% tariff on most imports.
Two-Tiered Tariff System:
- April 5: All imports will have a baseline 10% tariff.
- April 9: Some countries, including India, could face tariffs up to 26%.
Economic and Security Considerations: The policy is aimed at protecting U.S. economic and national security interests by imposing targeted tariffs on trading partners.