Donald Trump's global 'baseline' tariff takes effect
· RTE.ieUS customs agents began collecting President Donald Trump's unilateral 10% tariff on all imports from many countries today, with higher levies on goods from 57 larger trading partners due to start next week.
The initial 10% "baseline" tariff took effect at US seaports, airports and customs warehouses at 12.01am local time (5.01am Irish time), ushering in Mr Trump's full rejection of the post-World War II system of mutually agreed tariff rates.
"This is the single biggest trade action of our lifetime," said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House trade adviser during Mr Trump's first term.
Ms Shaw told a Brookings Institution event on Thursday that she expected the tariffs to evolve over time as countries seek to negotiate lower rates. "But this is huge. This is a pretty seismic and significant shift in the way that we trade with every country on earth," she added.
Mr Trump's Wednesday tariff announcement shook global stock markets to their core, wiping out €4.5 trillion in stock market value for S&P 500 companies by yesterday's close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds.
Among the countries first hit with the 10% tariff are Australia, Britain, Colombia, Argentina, Egypt and Saudi Arabia.
A US Customs and Border Protection bulletin to shippers indicates no grace period for cargoes on the water at midnight.
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However, a US Customs and Border Protection bulletin provided a 51-day grace period for cargoes loaded onto vessels or planes and in transit to the US before 12.01am local time.
These cargoes need to arrive by 12.01am local time on 27 May to avoid the 10% duty.
At the same hour on Wednesday, Mr Trump's higher "reciprocal" tariff rates of 11% to 50% are due to take effect.
European Union imports will be hit with a 20% tariff, while Chinese goods will be hit with a 34% tariff, bringing Mr Trump's total new levies on China to 54%.
Vietnam, which benefited from the shift of US supply chains away from China after Mr Trump's first-term trade war with China, will be hit with a 46% tariff and agreed yesterday to discuss a deal with Mr Trump.
Canada and Mexico were exempt from both Mr Trump's latest duties because they are still subject to a 25% tariff related to the US fentanyl crisis for goods that do not comply with the US-Mexico-Canada rules of origin.
Mr Trump is excluding goods subject to separate, 25% national security tariffs, including steel and aluminium, cars, trucks and auto parts.
His administration also released a list of more than 1,000 product categories exempted from the tariffs.
Valued at €588 billion in 2024 imports, these include crude oil, petroleum products and other energy imports, pharmaceuticals, uranium, titanium, lumber and semiconductors and copper.
Except for energy, the Trump administration is investigating several of these sectors for further national security tariffs.
It is understood the meeting will take place on Wednesday.
The two men have already spoken on the telephone in recent days when they discussed the two-way nature of the trading relationship between the countries.