U.S. President Donald Trump announced a 10% universal tariff on countries worldwide, which officially took effect on the 5th (local time).
The Trump administration confirmed through an executive order on the 2nd that a 10% universal tariff would be imposed on all imported goods. This measure took effect at 12:01 a.m. Eastern Time (1:01 p.m. Korea Time) on that day.
From now on, a 10% tariff will be applied to products from most countries imported into the United States. It can be viewed as a 'universal tariff' applicable to the majority of items from all countries, with very few exceptions, such as Canada and Mexico.
Certain essential minerals and energy products that cannot be produced in the United States, along with steel and aluminum already subject to a separate tariff (25%) under Section 232 of the Trade Expansion Act, as well as automobiles and parts, are excluded from this measure. Copper, pharmaceuticals, semiconductors, and wood, which are scheduled for individual tariffs in the future, are also not included in this universal tariff.
The basic tariff that took effect on this day is the first phase of the tariffs announced by President Trump on the 2nd, which he referred to as 'National Liberation Day of America.' Following the imposition of a 25% tariff on Korea, and classifying about 60 countries as so-called 'worst offenders,' he decided to enforce a basic tariff of 10% starting from the 5th, with a second phase of country-specific mutual tariffs (10% + alpha) set to take effect on the 9th. Consequently, the tariff rate on Korean products will rise from 10% to 25% at 12:01 a.m. on the 9th.
President Trump also utilized the International Emergency Economic Powers Act (IEEPA) for this measure. This law allows the president to broadly control economic activities, including trade with foreign countries, in the event of threats to diplomacy, security, or the economy.
Except for certain exempt items based on U.S. needs, this tariff applies regardless of the items or countries. The global trade war ignited by President Trump is expected to enter a new phase.
On the 9th, the U.S. mutual tariffs will come into effect, and when China implements a 34% 'retaliatory tariff' on U.S. imports starting on the 10th, the free trade order centered around the World Trade Organization (WTO) is expected to face its greatest challenge.