Washington-Effective 12:01 a.m. ET on Saturday, U.S. Customs began collecting a new 10% unilateral tariff, attributed to President Donald Trump, on imports arriving from numerous countries. This initial “baseline” levy, payable by U.S. importers at seaports, airports, and customs warehouses, signals a significant departure from the post-World War II system of mutually agreed tariff rates. Furthermore, higher tariffs targeting goods from 57 larger trading partners are scheduled to commence next week.
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. “But this is huge. 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 stock market value for S&P 500 companies by Friday’s close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds.
Among the countries first hit with the 10% tariff are Australia, Britain, Colombia, Argentina, Egypt and Saudi Arabia. A U.S. Customs and Border Protection bulletin to shippers indicates no grace period for cargoes on the water at midnight on Saturday.
But a U.S. Customs and Border Protection bulletin did provide a 51-day grace period for cargoes loaded onto vessels or planes and in transit to the U.S. before 12:01 a.m. ET Saturday. These cargoes need arrive by 12:01 a.m. ET on May 27 to avoid the 10% duty.
At the same hour on Wednesday, Trump’s higher “reciprocal” tariff rates of 11% to 50% are due to take effect. European Union imports will be hit with 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 after it hit Washington with a slew of countermeasures, including extra levies of 34% on all U.S. goods and export curbs on some rare earth minerals.
“China has been hit much harder than the USA, not even close,” Trump said on Saturday on social media. “THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic.”
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