President Donald Trump is stepping up his massive global trade war, a move that’s certain to weigh on Americans’ wallets and could push the US economy into a painful recession.
On Wednesday, Trump declared a national economic emergency and announced tariffs of at least 10% across all countries, with rates going even higher for 60 countries deemed the “worst offenders,” according to White House officials.
One of the highest tariff rates of 49% will be levied on all Cambodian imports, according to a poster Trump displayed at a Rose Garden event Wednesday. Among the other newly announced reciprocal tariff rates are 46% for Vietnam, 34% for China and 20% for the European Union.
China’s reciprocal tariff rate will be levied on top of the 20% tariff Trump already imposed, bringing its total tariff rate to a whopping 54%. The United States imported $439 billion worth of goods from China last year, the second top source of imports behind Mexico.
And starting on May 2, the 54% tariff rate will also be applied to packages worth less than $800 coming to the US from China and Hong Kong. This means Americans who order goods from Chinese-based companies like AliExpress, Temu and Shein will have to pay 54% more.
Goods subject to sector-wide tariffs, such as steel and aluminum and, soon, autos, won’t be subjected to additional country-specific reciprocal rates. However, in the case of China, sector tariffs will land on top of the 20% tariff in place before Wednesday’s announcement.
In most cases, Trump said the rates are “half” the tariff rate that the other countries and trading blocs charge the US when factoring in currency manipulation and other trade barriers. It’s unclear precisely how the administration arrived at those numbers.