Trump reveals reciprocal tariffs – 10% on all countries; individualised rates of up to 50%; 24% for Malaysia

Liberation Day has arrived. On Wednesday (April 2, 2025), United States president Donald Trump kept to his word and announced a series of reciprocal tariffs affecting over 180 countries, including Malaysia. These tariffs serve to remedy what Trump calls unfair trade policies imposed by countries, with some set to face higher tariffs for being “worst offenders.”

To kick things off, a 10% baseline tariff will be imposed on all countries beginning April 5. Meanwhile, “worst offenders” are slapped with individualised tariffs that go as high as 50%. Key trading partners that make up this list include the European Union (20%), China (34%), Vietnam (46%), Thailand (36%), Japan (24%), Cambodia (49%), South Africa (30%) and Taiwan (32%). Malaysia is hit with a 24% tariff, in case you’re wondering.

In a fact sheet posted by the White House, it was revealed that some good will not be subjected to these tariffs. These include steel and aluminium as well as cars and car parts that are already subject to a 25% tariff, with the material tax already active since March 12 while the car-related tariff takes effect on April 3 (local US time).

Canada and Mexico are also not subject to further tariffs, both of which currently facing a 25% tax since March 4. The new reciprocal tariff imposed on China stacks on top of the existing 20% announced earlier, which means the true tariff rate is 54%, CNBC reports.

Other goods exempted include copper, pharmaceuticals, semiconductors, lumber, bullion (such as gold and silver), humanitarian aid as well as energy and other certain minerals that are not available in the US.

China and Hong Kong will also no longer enjoy duty-free de minimis treatment come May 2. “Imported goods sent through means other than the international postal network that are valued at or under USD800 (about RM3.6k) and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties,” read a separate fact sheet.

“All relevant postal items containing goods that are sent through the international postal network that are valued at or under USD800 (RM3.6k) and that would otherwise qualify for the de minimis exemption are subject to a duty rate of either 30% of their value or USD25 (RM112) per item (increasing to USD50/RM224 per item after June 1, 2025),” it continued.

Trump noted that the reciprocal rates are not necessarily the only US tariffs that countries will face. We will charge them approximately half of what they are and have been charging us. So, the tariffs will be not a full reciprocal,” he said. The reciprocal tariffs include “the combined rate of all their tariffs, nonmonetary barriers and other forms of cheating,” Trump noted.

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