15 Apr Trump’s Tariffs Roll Out Rocks Global Trade
The 2nd of April saw Trump unveil his schedule of tariffs which will vary by country. These duties will apply to all goods imported under current U.S. trade agreements, except where otherwise specified.
Baseline Tariff Nations: including Australia and New Zealand
According to the Executive Order (section 3A), for countries that will incur an ad valorem rate of 10 per cent, this will apply to all goods entered for consumption on or after 12:01 a.m. eastern daylight time on 5th April 2025. However, goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. EDT on 5th April 2025 will not be subject to these duties.
Reciprocal Tariff Nations: including Europe and other Nations
According to the Executive Order (section 3A), country specific ad valorem rates will apply to all goods entered for consumption, on or after 12:01 a.m. eastern daylight time on 9th April 2025. However, goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. EDT on 9th April 2025 will not be subject to these duties.
Click here to view Annex I which includes a detailed overview of the tariff schedule and impacted nations.
At this stage, Trump’s tariff plan includes exemptions for certain foreign goods unavailable in the US. A full list of the current exemptions can be viewed in Annex II here.
Trump’s tariff plan also includes a 25% tariff on certain imported vehicles and auto parts arriving into the USA, effective almost immediately.
Notably absent from Wednesday’s announcement were Mexico and Canada as their trade conditions have been previously addressed by Trump, the details of which can be viewed here.
According to Trump, these taxes aim to address trading imbalances and restore and protect American jobs and manufacturing. However, as trading partners react with potential retaliatory tariffs, the consequences are yet to become clear, but it is speculated that both economic growth and consumer confidence will decline.
In terms of potential impact on supply chains, with businesses frontloading inventories in the US as early as 2024 due to concerns over upcoming tariffs and the US elections, they have already experienced an extended peak shipping season across Los Angeles and Long Beach, where cargo has been surging for months in a race to mitigate rising costs.
Therefore, whilst it is still too early to accurately predict the impact of these tariffs, there is speculation that this could create a rush to pull forward inventory purchases and frontload cargo before any further milestone dates, which would subsequently see volumes decrease as frontloading and general demand decreases after the initial rush.
In addition, most operators will need to increase capacity with regards to customs processing and clearance capacity to handle all new regulations and tariff requirements.
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