U.S. President Donald Trump announced at the White House on Wednesday that the United States will impose a universal baseline tariff of 10% starting April 5, with higher rates on several countries.

Trump said that some trading partners, including China, Japan, and the European Union, will face tariffs above the baseline rate, effective April 9. According to Trump, these countries will face rates equivalent to half of the total calculated value of trade barriers they impose on the U.S., including tariffs and value-added taxes.

For example, the U.S. will impose a 34% tariff on China, based on the calculated 67% rate China sets against the U.S. through tariffs and other trade actions. Meanwhile, Japan will face 24%, the EU 20%, and Vietnam 46%.

According to the executive order signed by Trump, if at least 20% of a finished product's value is produced in the U.S., the new tariffs will apply only to the non-U.S.-made portion of that product. The order aims to correct trade practices that have led to a persistently widening U.S. annual goods trade deficit through "reciprocal tariffs."

A fact sheet released by the White House shows that previously imposed tariffs on Canada and Mexico are not affected by the new tariffs, including the suspension of tariffs on imports compliant with the USMCA.

Additionally, goods such as steel, aluminum, automobiles, auto parts, copper, pharmaceuticals, and semiconductors are not subject to the new tariffs. Previously imposed tariffs on steel and aluminum, as well as automobiles and auto parts, will remain in effect.

This decision by the Trump administration softens the impact that the initially promised universal reciprocal tariffs might have caused.

In February of this year, Trump directed federal agencies to review all non-reciprocal trade agreements facing the U.S. and required them to submit proposed remedies within 180 days.

Although the memorandum called for proposing remedies, Trump initially said he would match the tariff rates of other trading partners under this reciprocal tariff policy.

"In other words, if they charge us a tax or tariff, we will charge them the exact same tax or tariff," Trump said at a February press conference in the Oval Office.

Trump repeatedly said he would implement such reciprocal tariffs on April 2, the day after federal agencies were required to submit results of the trade policy review ordered on his first day in office. Although the review results have not been released, cabinet officials have been tasked with assessing trade agreements and potential unfair trade practices by other countries.

In the lead-up to April 2, Trump had already raised import tariffs on specific countries and industries. His administration has increased tariffs on China by 20% and considered imposing a 25% "secondary" tariff on countries purchasing oil from Venezuela.

Meanwhile, in March, after an initial one-month delay, the 25% tariffs on Canadian and Mexican goods compliant with the USMCA were suspended.

U.S. trading partners have responded to Trump's tariff actions: China and Canada have introduced their own retaliatory tariffs, and the EU has pledged countermeasures by mid-April. Meanwhile, Mexican President Claudia Sheinbaum said in February that the country has multiple plans in place to respond to increased U.S. import tariffs.

Correction: This article has been updated to clarify which countries qualify for USMCA-related exemptions.