On April 2, Donald Trump stirred political corridors and global markets by imposing tariffs on countries worldwide. A base tariff of 10% on nations trading with the US has been applied, effective from April 5. Furthermore, countries with high tariffs on US goods face an additional 10% tariff (ranging between 10-50%), coming into effect on April 9.
Specifically, Sri Lanka and Myanmar face a 44% tariff, while Bangladesh and China face 37% and 34% (including a previous 20% tariff for a total of 54%) respectively.
Trump's tariffs fall under the 1977 International Emergency Economic Powers Act, aimed at reducing trade deficits and promoting domestic manufacturing. While Trump argues tariffs will boost US production and create jobs, critics warn they might cause economic disruptions and spark trade wars internationally.
Announcing the tariffs on Wednesday, Trump remarked that for decades friends and foes alike have 'looted' America. He emphasized that the US will now impose equal tariffs on countries imposing tariffs on American goods. His declaration on April 2 demonstrated his unyielding approach towards any nation with heavy tariffs.
Which Country Faces the Highest Tariff?
After assuming office on January 20, Trump addressed the American Congress in March for the first time. During his address, he spoke of ceasing aid from the government institution, USAID, to various countries. He cited an African nation, Lesotho, mentioning vast spends on LGBTQ communities there, a nation little known to many.
Trump has now levied the highest tariff on this African nation. Lesotho is now facing a 50% reciprocal tariff. Interestingly, Lesotho imposes a 99% tariff on US imports. In 2024, trade between Lesotho and the US amounted to $240 million, showing a significant trade deficit for the US.
Lesotho purchases fewer goods from the US while exporting large volumes of textiles to America, resulting in a US trade deficit. To offset this deficit, Trump has enforced tariffs on the African nation.
Cambodia and Laos See Tariffs of 49% and 48% Respectively
Trump has imposed a hefty 49% tariff on Cambodia which levies 97% tariffs on American imports. Trade between the US and Cambodia in 2024 reached $13 billion, with the US exporting $321.6 million worth of goods and importing $12.7 billion from Cambodia.
Cambodian exports of garments, leather goods, travel items, handbags, electronics, and footwear to America will now face the steep 49% tariff, significantly increasing costs in the US.
Laos
now faces a 48% tariff as it had customs tariffs of 95% on American goods. Trade between the two countries stood at $844 million in 2024, with Laos exporting goods worth $803.3 million to America.
The trade resulted in the United States suffering a $762.9 million deficit. Laos exports optical fibers, footwear, and woven hats to the United States.
Additionally, Trump’s tariffs target Madagascar at 47%, Vietnam at 46%, and Sri Lanka and Myanmar at 44%, along with Bangladesh, Serbia, and Botswana facing a 37% tariff.
Vietnam, Bangladesh, and Sri Lanka export significant amounts of textiles, electronics, and footwear to America. The tariffs will profoundly impact these industries, disrupting the global supply chain, and making these products significantly more expensive for American consumers.
Impact on 'Dirty 15'
Trump’s administration labels nations like India and China under the 'Dirty 15', notorious for high tariffs on US goods. The 'Dirty 15' nations are: China, the European Union, Mexico, Vietnam, Ireland, Germany, Taiwan, Japan, South Korea, Canada, India, Thailand, Italy, Switzerland, Malaysia, Indonesia.
China - 34% (including previous 20% for a total of 54%) European Union - 39% Mexico - No new tariffs; initially imposed 25% upon entry Vietnam - 46% Taiwan - 32% Japan - 24% South Korea - 26% Canada - Pre-existing 25% tariff India - 27% Thailand - 37% Switzerland - 32% Malaysia - 24% Indonesia - 32%
Ireland, Germany, and Italy, as EU countries, get hit with a 39% tariff.
