US Officially Implements 10% Global Basic Tariff... Differential Reciprocal Tariffs Effective from the 9th

U.S. President Donald Trump's 10% basic tariff applied globally officially took effect on the 5th (local time).

The basic tariff confirmed by President Trump through an executive order on the 2nd will be implemented from 12:01 a.m. Eastern Time on that day (1:01 p.m. Korean time on the 5th). Accordingly, a 10% tariff will be imposed on products from most countries imported into the United States. This is a 'universal tariff' applied to the majority of import items from all countries except a very few, such as Canada and Mexico.

However, certain essential minerals and energy and energy products that cannot be produced in the U.S., as well as steel, aluminum, and automobiles which already have item-specific tariffs (25%) applied under Section 232 of the Trade Expansion Act, are excluded. Semiconductors, pharmaceuticals, and other items that are subject to future item-specific tariffs are also excluded from this tariff.

The reciprocal tariffs, which President Trump announced would be applied differentially by country, will take effect from the 9th. President Trump labeled about 60 countries as 'worst offenders' and said that in addition to the basic tariff, high reciprocal tariffs would be applied from the 9th.

Korea was not spared from the tariff bomb. The U.S. tariff rate on Korean products will be raised from 10% to 25% starting at 12:01 a.m. on the 9th.

President Trump's tariff policy has effectively ignited a global trade war. China has already decided to impose retaliatory tariffs of 34% on U.S. imports starting from the 10th of this month. In addition, various countries around the world that have been subjected to high tariffs are expected to respond with countermeasures or enter into behind-the-scenes negotiations, suggesting that the global trade order will be in turmoil for the time being.