Which 60 Countries Face the New Tariff Rates?
When the new tariff rules kicked in at 12:01 a.m. ET Friday, 60 countries suddenly found themselves on a very important list. These aren’t random picks — they represent America’s top trading partners and cover 99.4% of all U.S. imports. That’s nearly everything shipped into the country.
The list splits into two groups. One group faces a 10% tariff rate and includes countries like Canada, Mexico, India, and the UK. The second group faces 12.5% and includes China, Japan, Brazil, and South Korea. The authority behind this action comes from Section 301 of the Trade Act of 1974, which gives the U.S. government broad power to respond to unfair trade practices.
Think of it as two different lunch prices — same cafeteria, different menus. Countries that make commitments to enforce bans on forced labour imports earn the lower 10% rate, while those that don’t are stuck paying 12.5%. These higher duties are likely to raise consumer prices on affected goods and could ripple through household budgets.
What the 10% and 12.5% Rate Split Actually Means
The new tariff system sorts all 60 covered trading partners into one of two groups: a 10% rate or a 12.5% rate.
The new tariff system divides 60 trading partners into just two groups: a 10% rate or a 12.5% rate.
Think of it like a report card with two grades. Countries that ban forced-labor imports or promised to do so earn the lower 10% rate.
Nations like India, Canada and the United Kingdom made that list. Countries that haven’t taken enough action on forced labor get the steeper 12.5% rate.
China and Vietnam land there. Both rates work as flat duties rather than add-ons to existing tariffs for most covered partners. The European Union, the largest single US trading partner, also falls into the 12.5% tier.
Thirty-eight countries in total sit in that higher bracket, meaning more than half of all covered economies face the steeper rate. The USTR reached these determinations after sixty investigations over five months, along with two rounds of hearings and more than 2,100 comments on the record.
These tariff changes could influence import prices and broader markets through shifts in borrowing costs and investor expectations, especially as interest rate dynamics react to economic adjustments.
What Products Are Exempt From the New Tariff Wave?
Not everything gets hit by the new tariff wave. Plenty of goods got a free pass.
USMCA-compliant products from Canada and Mexico stay exempt as long as they follow the trade agreement’s rules.
Oil, gas, critical minerals, and certain metals also avoid the new duties.
Food items like coffee, cocoa, bananas, and tropical fruits are spared since the U.S. simply cannot grow enough of them.
Aircraft parts, semiconductors, and some pharmaceutical ingredients are also off the list.
Even used clothing and art made the exemption cut.
Over 470 products total escaped the new tariffs. The full exemption list is drawn from Annex II, which covers more than 1,000 products shielded from the April 2 measures. Governments and large institutions often rely on government bonds as a conservative funding tool, which helps explain why debt-sensitive sectors were closely scrutinized during the exemption review.
Why Trump Had to Rebuild His Entire Tariff Strategy
While some products managed to dodge the new tariff wave entirely, the bigger story is how the whole tariff system nearly collapsed — and had to be rebuilt from scratch.
A Supreme Court ruling struck down country-specific tariffs and forced the administration back to the drawing board. Central bank coordination played a background role in smoothing market reactions to the policy upheaval.
The old approach had been patchy and unpredictable.
So the White House rebuilt it using multiple legal tools including IEEPA, Section 232, Section 201, and Section 301.
Think of it like replacing a leaky roof with an entirely new structure.
The new system layers country tariffs, industry tariffs, and trade deals together making it much harder to knock down. The baseline applies a 10% tariff on all countries, with steeper individualized rates hitting nations that run the largest trade surpluses with the United States. The court’s ruling specifically targeted tariffs introduced under emergency powers, which Trump had used without seeking approval from Congress.
Which Sectors Face the Next Round of Tariff Escalation?
Even with the tariff system freshly rebuilt, some industries are bracing for a rougher ride ahead.
The tariff landscape may look new, but the turbulence for industries everywhere is just getting started.
Automakers worry about rising costs on both finished vehicles and parts from Mexico and Canada. Supply-chain disruption from retaliatory measures could force firms to seek new suppliers and reshuffle production footprints.
Steel and aluminum face a fresh 25% tariff hitting major trade partners.
Semiconductors could see rates climb as early as June 2027.
Electronics face over $47 billion in projected tariff exposure.
Pharmaceuticals were left out of the main tariff framework but a separate Section 232 action looms.
Medicine costs alone could jump by over $50 billion.
Basically, no factory floor gets to relax anytime soon. Section 232 tariffs on pharmaceuticals alone are projected to raise nearly $78 billion in federal revenue over the 2026–2035 window, signaling just how deeply these levies will cut into the sector.
Smartphones, by contrast, have repeatedly secured exemptions across multiple tariff actions, with India-assembled iPhones avoiding the 20% China tariff that reshaped global sourcing patterns almost overnight.
