Sweeping Changes: Trump's Dynamic Tariff Policy Unveiled

President Trump announces a new U.S. trade policy with differential tariffs based on goods' origin and type. Key sectors face a 25% tariff; low-value goods and strategic items are exempt. A phased two-layer tariff system starts in April 2025, with country-specific rates following. India's exports could face 27% tariffs.

President Donald Trump has introduced a sweeping overhaul of the U.S. trade policy, implementing a novel tariff structure focusing on the intricate web of global exports.

The revised policy introduces a significant 25% tariff aimed at major industrial sectors such as aluminum, steel, and automobiles from most countries. Meanwhile, low-value e-commerce goods and essential commodities, such as pharmaceuticals and energy products, enjoy exemptions or face minimal tariffs.

Additionally, a two-tiered tariff model set to start in April 2025, imposes an initial 10% tariff on all imports, with variable, country-specific tariffs to follow. India and other nations could see tariffs up to 27%, as countries align with U.S. interests, according to Ajay Srivastava of GTRI.

(With inputs from agencies.)