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Latest headlinesManufacturing News

Trump Imposes Reciprocal Tariffs on Imported Goods

By Alyse Thompson-Richards, Editor in Chief
Container ship at port
Cargo ship loaded in New York container terminal at night. Photo courtesy of Getty Images Plus / Ultima_Gaina
April 3, 2025

U.S. President Donald Trump has announced new tariffs on goods imported from other parts of the world.

Trump will impose a minimum 10% tariff on all goods from other countries, effective April 5. Citing large trade deficits, the president also announced higher reciprocal tariffs for some countries, set to take effect on April 9.

Specifically, China will face a reciprocal tariff of 34%, while Vietnam will see a reciprocal tariff of 46%. The European Union will see 20%, Taiwan will see 32% and Japan will see 24%. 

CNN reported the reciprocal tariffs were calculated, in most cases, by dividing the country’s trade deficit by the value of the country’s exports to the U.S., then by dividing that figure by half in gesture of “kindness.”

The reciprocal tariffs do not include steel, aluminum, automobiles and automotive parts, copper, pharmaceuticals, semiconductors, lumber, energy and other certain minerals that are not available in the United States. However, these reciprocal tariffs follow taxes previously imposed on steel, aluminum and automobiles.

The announcement sent stock markets in the U.S., Europe and Asia tumbling and prompted criticism from global leaders.

Citing data from the U.S. Census Bureau, the National Association for Manufacturers (NAM) notes 56% of good imported to the U.S. are manufacturing inputs, with 28% representing capital goods, 22% industrial supplies and 6% auto parts.

Before Trump announced the tariffs, Jay Timmons, president and CEO of the National Association for Manufacturers (NAM), told CNBC's Frank Holland that "in any scenario" the tariffs would add costs to manufacturers, particulary on manufacturing inputs.

“I think it’s safe to say everybody would like more things made in this country because that’s good for the economy, good for jobs," Timmons says. "What is not good though is driving up the cost of making those things in the United States.”

Timmons called for renewing 2017 tax reforms, reducing regulatory and energy costs, and addressing workforce gaps as means to lowering manufacturing costs.

“If we could have those advancements and those things that will bring costs down, that’s good for investment in the United States," Timmons says. "Adding costs for inputs like critical minerals really does not help us in the long term.”

Timmons also points to NAM's recent Manufacturers Outlook Survey, in which three-quarters of respondents cited trade uncertainty as the top challenges. Additionally, 69% said they would delay capital purchases, 45% would hold off on hiring and 45% would stall expanding operations.

Meanwhile, Scott Paul, president of the Alliance for American Manufacturing, praised the move.

“After decades of policies geared toward offshoring, there will be an adjustment period as businesses restructure their supply chains to adapt to the tariffs, but America can no longer avoid facing the trade imbalances that have plagued us for more than two decades,” Paul says. “Global companies that led the offshoring charge should be held accountable when they seek to hike prices for American consumers. For the past three decades, these corporations have moved millions of jobs out of America and gotten richer. Now they have a choice to make, and their best choice will be to move the production back. Going forward, we must match today’s trade action with comprehensive policies and incentives that spur investment in U.S. factories and supply chains.”

Tom Madrecki, vice president of supply chain resiliency for the Consumer Brands Association, notes the U.S. consumer packaged goods industry manufactures the majority of this products in the country, but he notes there are "critical ingredients and inputs that need to be imported due to scarce availability domestically."

"No amount of tariffs will bring these inputs back to the U.S.," Madrecki adds. "However, well intended, the success of the President’s America First Trade Policy, must recognize the U.S. companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically. Reciprocal tariffs that do not reflect ingredient and input availability concerns will inevitably raise costs, limit consumer access to affordable products and unintentionally harm iconic American manufacturers. We encourage President Trump and his trade advisors to fine-tune their approach and exempt key ingredients and inputs in order to protect manufacturing jobs and prevent unnecessary inflation at the grocery store.”

David French, executive vice president of governmental relations for the National Retail Federation, also pointed to uncertainty surrounding the tariffs.

“Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer,” French says. “Tariffs will not be paid by foreign countries or suppliers. Even more so, the immediate implementation of these tariffs is a massive undertaking and requires both advance notice and substantial preparation by the millions of U.S. businesses that will be directly impacted. We encourage President Trump to hold trading partners accountable and restore fairness for American businesses without creating economic uncertainty and higher prices for American families.”

KEYWORDS: imported foods imported ingredients imports and exports tariffs

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Alyse thompson richards
Alyse Thompson-Richards has held many positions with BNP Media, first serving as an intern at Candy Industry in summer 2012. She joined Candy Industry's staff full time as associate editor in August 2016 after a few years at newspapers in West-Central Illinois. Alyse has since served on Cannabis Products Insider and joined FOOD ENGINEERING in 2024. She has bachelor’s degrees in journalism and Spanish from Western Illinois University. Image courtesy of Thompson-Richards

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