Trump Imposes 10% Baseline Tariff on Imports, UK Secures Preferential Terms Amid New Trade Policy

President Donald Trump announced a new trade policy imposing a 10% baseline tariff on most imports to the U.S., effective early April. Countries with large trade surpluses face higher tariffs, with China hit by a 145% rate. The UK secured a special deal maintaining the 10% rate, citing historical ties. The policy aims to correct unfair trade practices and boost domestic manufacturing. The U.S. is negotiating with over 70 countries to avoid higher tariffs, while domestic businesses express concerns over increased costs and market unpredictability.

A New Tariff Era: 10% as the Floor

Speaking from the Oval Office on Thursday, President Trump confirmed that the 10% tariff would serve as the minimum rate for all countries seeking trade agreements with the United States. “Some will be much higher because they have massive trade surpluses and in many cases they didn’t treat us right,” Trump told reporters. The president emphasized that the new tariff structure is designed to correct what he described as decades of unfair trade practices and to incentivize domestic manufacturing.

The 10% baseline tariff, part of what Trump has dubbed the “Liberation Day” tariffs, was first introduced on April 2 and implemented on April 5. It applies broadly to most imported goods, with exceptions and adjustments made through bilateral negotiations. Countries with significant trade surpluses, such as China, are subject to much steeper rates—up to 145% in some cases.

UK Trade Deal: A Model of “Respect”

The United Kingdom became the first country to finalize a trade agreement under the new tariff regime. The deal, announced jointly by President Trump and British Prime Minister Keir Starmer, maintains the 10% baseline tariff on most British goods but removes or reduces several other levies. These include the elimination of a 25% tariff on British steel and aluminum and a reduction in auto tariffs from 27.5% to 10% for up to 100,000 vehicles annually.

“This should be a very big and exciting day for the United States of America and the United Kingdom,” Trump said in a Truth Social post. “Because of our long-time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement.”

Trump made clear that the UK’s treatment should not be seen as a template for other nations. “That’s a low number. They made a good deal. Many, some will be much higher, because they have massive trade surpluses,” he said.

Trade Surplus Nations Face Steep Tariffs

Countries with large trade surpluses with the U.S. are facing significantly higher tariffs under the new policy. China, in particular, has been hit with a 145% customs fee on its exports to the U.S., effectively halting many shipments. Trump defended the move, stating, “China deserves it,” and added that the tariffs were necessary to bring Beijing to the negotiating table.

Despite the harsh measures, Trump has signaled a willingness to reduce tariffs on China depending on the outcome of upcoming trade talks. “We’re going to see,” he said. “Right now it’s at 145%. You can’t get any higher than that, so we know it’s coming down.”

U.S. and Chinese officials are scheduled to meet in Switzerland this weekend to begin formal negotiations. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will represent the U.S. in the talks, which mark the first high-level engagement between the two countries since Trump’s re-election.

Global Reactions and Ongoing Negotiations

The Trump administration has initiated discussions with over 70 countries seeking to avoid the higher tariffs. In addition to the UK, nations such as Japan, Australia, India, South Korea, Israel, and Vietnam are reportedly in various stages of negotiation.

India has proposed a 0% reciprocal tariff on select goods, including steel, auto components, and pharmaceuticals, up to a certain volume. Talks with India and Israel are said to be nearing completion, according to administration officials.

The European Union, which was initially subject to a 20% reciprocal tariff, has seen that rate reduced to 10% during a 90-day pause in enforcement. In response, the EU has suspended its retaliatory tariffs on U.S. goods.

Domestic Impact and Business Response

The new tariff regime has already begun to affect American businesses and consumers. According to reports from NPR, small businesses are adjusting prices and informing customers about the added costs. Some companies have seen import costs more than double, particularly for goods sourced from China.

Retailers and manufacturers have expressed concern about the unpredictability of the tariff environment. “It’s almost time for us to start ordering for the holiday season, and I have no idea how to do that this year,” one business owner told NPR. “I don’t want to pay significantly more. I don’t want to have too much product on my shelves.”

Despite these concerns, Trump has maintained that the tariffs are necessary to protect American industries and bring manufacturing back to the U.S. “We don’t have to sign deals. They have to sign deals with us,” he said during a recent meeting with Canadian Prime Minister Mark Carney.

U.S.-UK Deal Details and Next Steps

The U.S.-UK trade agreement is expected to provide American companies with expanded market access for beef, ethanol, chemicals, machinery, and industrial products—opportunities the Trump administration estimates to be worth $5 billion. However, talks on non-tariff barriers, particularly concerning U.S. meat exports, are still ongoing.

British Prime Minister Keir Starmer, speaking from a Jaguar Land Rover factory in the Midlands, said the deal would protect British businesses and save jobs. “The 10% U.S. tariff on imports of most British goods will remain,” he acknowledged, but emphasized that the removal of other tariffs would provide significant relief to key industries.

Trump has indicated that more trade deals are on the horizon. “The Golden Age of America is coming!” he declared, suggesting that the administration’s aggressive trade posture is just beginning.

References

• Trump tariffs live updates: Trump unveils 'breakthrough' US-UK trade deal, first since 'Liberation Day'
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