Quantifying Non-Tariff Barriers for Reciprocal Tariffs
China 34%... Japan 24%, UK 10%
U.S. President Donald Trump has formalized the imposition of reciprocal tariffs with different rates for each country, taking into account tariff and non-tariff barriers of major trading partners worldwide. A 25% tariff will be applied to South Korea. China, with which the U.S. is engaged in a trade war, faces a 34% tariff, while Vietnam, considered a bypass export route to the U.S. from China, is hit with a whopping 40% tariff.
On the afternoon of the 2nd at 4 PM, President Trump delivered a speech titled "Making America Wealthy Again" at the White House Rose Garden, attended by many members of his second-term administration, announcing the imposition of different reciprocal tariffs by country.
The reciprocal tariffs apply to all countries, starting at 10%. The tariff rates increase for countries judged to have high trade barriers, considering both tariff and non-tariff barriers.
President Trump said, "We will impose roughly half the level they impose on us," adding, "Therefore, the tariffs will not be completely reciprocal."
Holding up a chart showing each country's tariff rates on the U.S. and the U.S.'s reciprocal tariff rates, President Trump explained the reciprocal tariff rates by country. He first announced a 34% tariff rate on China. He then explained that when considering non-tariff barriers such as currency manipulation, China's tariff rate on the U.S. is estimated to reach 67%, emphasizing that the U.S.'s reciprocal tariff rate on China is lower than that.
Vietnam, considered a bypass export route to the U.S. from China, will face a 46% tariff. The European Union (EU) will be subject to a 20% tariff, and the United Kingdom will be charged the lowest reciprocal tariff rate of 10%.
South Korea will be subject to a 25% reciprocal tariff rate, while Japan will face a 24% tariff, 1 percentage point lower than South Korea's. The chart President Trump held indicates that South Korea's tariff rate on the U.S. reaches 50%. However, due to the Korea-U.S. Free Trade Agreement (FTA), most tariffs on U.S. goods have been eliminated, effectively making the tariff rate close to 0%.
Regarding South Korea, President Trump stated, "South Korea produces 81% of its automobiles domestically and imposes tariffs of over 500% on U.S. rice." He also mentioned, "Many countries, including South Korea and Japan, are imposing non-tariff barriers against the U.S."
Furthermore, President Trump emphasized, "April 2nd will be remembered as the day America was made wealthy again," adding, "Jobs and factories will return to America, and you are already seeing it."
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