Trump’s 10% Tariff Takes Effect: US Begins New Trade Policy Shift Affecting Global Markets

U.S. Customs and Border Protection began collecting a 10% baseline tariff on imports early Saturday, following President Donald Trump’s executive decision to reset global trade terms. The tariff applies to imports from multiple countries and marks a significant shift away from long-standing post-World War II trade practices.

The baseline duty came into effect at 12:01 a.m. ET, applying immediately to goods arriving at U.S. ports, airports, and customs facilities. According to Customs bulletins, cargo already en route before the deadline has a 51-day grace period—goods must arrive by May 27 to avoid the tariff.

 Countries Affected in Initial Phase

Nations first impacted by the new tariff include:

Australia

United Kingdom

Colombia

Argentina

Egypt

Saudi Arabia

Higher tariff rates between 11% and 50% are scheduled to start Wednesday. These include:

European Union: 20%

China: 34%, raising the total tariff on Chinese goods to 54%

Vietnam: 46%

Vietnam has agreed to enter negotiations with the Trump administration, as the country was a significant beneficiary of the previous trade shift from China.

 Economic and Market Impact

Trump’s tariff policy announcement earlier in the week triggered a sharp sell-off in global markets. By Friday’s market close, the S&P 500 saw a $5 trillion loss in value over two days. Commodity prices also dropped, and investors shifted to government bonds.

“This is the biggest trade shift of our lifetime,” said Kelly Ann Shaw, a former White House adviser, during a Brookings Institution discussion. She predicted that affected countries will likely seek negotiations to reduce the tariffs.

 Tariff Exemptions and Ongoing Investigations

Some product categories have been excluded from the tariffs. Exempted goods include:

Crude oil and petroleum products

Pharmaceuticals

Uranium and titanium

Lumber

Semiconductors

Copper

These exemptions, valued at approximately $645 billion in 2024, reflect strategic sectors under separate reviews or national security considerations. Steel, aluminum, vehicles, and parts are also excluded under existing 25% tariffs.

 USMCA Nations Not Affected

Canada and Mexico remain exempt from the new tariffs but are still subject to a 25% duty on non-compliant goods under the U.S.-Mexico-Canada Agreement (USMCA), particularly those tied to ongoing concerns over fentanyl smuggling.

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