Tariff Rates Modified Again: President Donald J. Trump Alters Reciprocal Tariff Rates
In a significant move aimed at rectifying trade imbalances, President Donald Trump signed an Executive Order on April 2, 2025, which came into effect on August 7, 2025. This order introduced modified reciprocal tariff rates for a broad list of approximately 70 countries, as detailed in Annex I.
Countries not listed in Annex I will face a baseline tariff of 10% on imports. Notable inclusions in Annex I are major U.S. trade partners such as the European Union, Japan, South Korea, and India.
Tariffs on imports from Canada, Mexico, and China continue under separate, specific duties outside this reciprocal tariff framework. India, for instance, faces a 25% tariff under this order. The varying tariff rates for these countries are a result of negotiations or agreed trade and security commitments.
Countries that have not sufficiently negotiated or aligned with U.S. interests face higher rates or the baseline 10% tariff. This action is part of the Administration's commitment to protect national security, advance economic interests, and uphold a system of trade based on fairness and reciprocity.
Japan has agreed to invest $550 billion in the United States to rebuild and expand core American industries, while paying a baseline 15% tariff rate. Additional trade deals with Indonesia, the Philippines, South Korea, Vietnam, and others will protect U.S. industries, open foreign markets, and encourage foreign investment in American industries.
With billions in reshoring investments already announced, President Trump is bringing manufacturing jobs back to America, revitalizing communities, and strengthening supply chains. The United States-United Kingdom trade deal includes billions of dollars of increased market access for American exports.
These investments position the United States as the world's premier destination for innovation, manufacturing, and economic growth. The EU has agreed to purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States by 2028, while accepting a 15% tariff rate.
President Trump's tariff policies have generated significant investment into the United States, totaling over $2.3 trillion by 2028. This includes $750 billion from the EU, $600 billion in new investments from the EU, $550 billion from Japan, and unspecified amounts from other countries like Indonesia, the Philippines, South Korea, and Vietnam.
The Administration continues to use all available tools to ensure a fair and reciprocal trading system that benefits American workers and industries. This executive order is a testament to that commitment.
- The Executive Order signed by President Donald Trump in April 2025, effective from August 7, 2025, sets modified reciprocal tariff rates for approximately 70 countries, including major trade partners like the European Union, Japan, South Korea, and India.
- Countries not listed in Annex I will face a baseline tariff of 10% on imports. For instance, India faces a 25% tariff under this order.
- Japan has agreed to invest $550 billion in the United States while paying a baseline 15% tariff rate, and additional trade deals with Indonesia, the Philippines, South Korea, Vietnam, and others aim to protect U.S. industries, open foreign markets, and promote foreign investment in American industries.
- President Trump's tariff policies have generated significant investment into the United States, totaling over $2.3 trillion by 2028. This includes $750 billion from the EU, $600 billion in new investments from the EU, $550 billion from Japan, and unspecified amounts from other countries like Indonesia, the Philippines, South Korea, and Vietnam.
