US tariffs will depend on the type of goods and country of origin: GTRI

ANI April 3, 2025 163 views

The United States is implementing a revolutionary new trade policy that will dramatically reshape global import taxation. President Trump's executive order introduces a complex, multi-tiered tariff system with rates varying by country and product type. Strategic sectors like pharmaceuticals and semiconductors will remain largely untouched, while industrial goods face potential 25% tariffs. The new policy aims to create a more reciprocal and security-focused international trade environment.

"The actual tariff a country faces depends on what it's exporting" - Ajay Srivastava, GTRI Founder
New Delhi, April 3: According to the new U.S. trade policy announced by President Donald Trump on Wednesday, the amount a country pays in tariffs will depend on the type of goods being exported and their origin, says GTRI founder Ajay Srivastava.

Key Points

1

US announces two-layered tariff system starting April 2025

2

Baseline 10% tariff with country-specific additional rates

3

Strategic goods like pharma and semiconductors remain exempt

4

Tariffs could reach up to 27% for some countries

Firstly, some goods will face zero tariffs, these include essential and strategic items such as pharmaceuticals, semiconductors, copper and energy products like oil, gas, coal and LNG.

Only the non-U.S. portion of products having 20 percent or more U.S.-made content will be taxed. Also, low-value shipments under USD 800, which mainly cover e-commerce orders, will be taxed at old tariff rates.

Secondly, a 25 percent tariff will apply to key industrial sectors, such as aluminium, steel, automobiles, and auto parts, and will apply to most countries.

For most other goods, there will now be a two-layered tariff system. All imports are first subject to a 10 percent baseline tariff starting April 5, 2025. Then, beginning April 9, 2025, certain countries will face country-specific tariffs. Country-specific tariffs will replace baseline tariffs after April 9th.

Starting April 9, goods from India could be subject to tariffs as high as 27 percent. However, pharmaceuticals, semiconductors, copper, and energy products remain exempt from any new tariffs.

"The actual tariff a country faces depends on what it's exporting and how its trade practices align with U.S. economic and national security interests," says Ajay Srivastava

Executive Order-Sec. 2. The Reciprocal Tariff Policy reads, "The additional ad valorem duty on all imports from all trading partners shall start at 10 percent and shortly thereafter, the additional ad valorem duty shall increase for trading partners enumerated in Annex I to this order at the rates set forth in Annex I to this order. These additional ad valorem duties shall apply until such time as I determine that the underlying conditions described above are satisfied, resolved, or mitigated".

Reader Comments

R
Rajesh K.
Interesting breakdown! The exemption for pharmaceuticals and semiconductors makes sense given their strategic importance. Curious to see how this impacts India's export mix going forward.
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Sarah L.
The 27% tariff on some Indian goods seems steep 😬 But at least they kept essential items tariff-free. Hope this pushes both countries to negotiate better trade terms!
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Mike T.
As an American manufacturer, I appreciate the focus on protecting key industries. The tiered system seems fair - rewards good trade partners while protecting domestic production.
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Priya N.
The article could have explained more about how the "U.S.-made content" percentage is calculated. That seems like a crucial detail for businesses trying to navigate these new rules.
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David W.
Smart move keeping e-commerce shipments at old rates. That $800 threshold protects small businesses and consumers from sudden price shocks on everyday items.
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Anika R.
The phased implementation (April 5 then April 9) gives businesses some time to adjust at least. Still, 2025 is coming up fast - companies need to start planning now!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
US Trade Policy Donald Trump Tariffs Global Trade Ajay Srivastava GTRI Import Taxes
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