Trade war: Trump’s 10% baseline tariffs take effect, higher duties to follow 

The tariffs, which apply globally, are part of a broader effort to reshape international trade dynamics.

Higher duties on specific countries, replacing the 10% rate, are set to begin on April 9, further escalating trade tensions.

The new tariffs have raised U.S. duties to their highest levels in over a century, disrupting ...-World War II global trading system that Trump has frequently criticized as unfair.

Countries affected by the levies are now weighing their responses, with many expressing concerns about the long-term implications for international trade.

The announcement of the tariffs on Wednesday sent shockwaves through financial markets. The S&P 500 index plunged to its lowest level in 11 months, erasing $5.4 trillion in market value over just two trading sessions.

This marked the steepest two-day decline since the onset of the COVID-19 pandemic in March 2020.

Adding to the uncertainty are Trump’s mixed signals about his willingness to negotiate. While he has indicated openness to reducing tariffs if other nations offer him something “phenomenal,” his inconsistent messaging has left foreign leaders and business executives grappling with how to respond.

Trade lawyer at Hogan Lovells and former White House trade adviser Kelly Ann Shaw described the tariffs as a historic move.

“This is the single biggest trade action of our lifetime,” she stated, emphasizing the far-reaching implications for global commerce. 

The U.S. Customs and Border Protection (CBP) issued a bulletin clarifying the implementation of the tariffs.

While there is no grace period for cargoes already on the water as of midnight Saturday, the CBP has provided a 51-day grace period for goods loaded onto vessels or planes before the deadline. These shipments must arrive in the U.S. by May 27 to avoid the 10% duty.

What you should know 

These measures are expected to further strain U.S.-China relations and disrupt global supply chains. The escalating trade war underscores the challenges of navigating an increasingly protectionist global economy.