The recently announced reciprocal tariffs between the U.S. and other countries are set to reshape global trade dynamics as we know it. With wide-ranging implications for importers, exporters, and ecommerce businesses alike, we dive into how the new reciprocal tariffs are targeting and impacting a range of countries, unpacking key tariff changes by country, industries impacted, and what ecommerce businesses should consider as the global economy and trade relationships shift.

Please note that this information is subject to change over time and that the government of the United States is the best source of information regarding tariffs or changes to tariffs.

What Are Reciprocal Tariffs?

With the U.S. issuing sweeping reciprocal tariffs on all imported goods, and fears mounting in the beginnings of what may become a trade war, some may still be asking: what are reciprocal tariffs? In high level terms, a reciprocal tariff refers to the U.S. imposing and matching the same value of any tariffs that another country has placed on American goods. Differing from retaliatory tariffs, which exceeds the original amount to force a country into reversing its imposed tariffs, reciprocal tariffs are solely a dollar-for-dollar response aimed at creating a level playing field in international trade. The U.S. announced they will be placing reciprocal tariffs calculated at roughly half the rate of duties charged by other countries.

As the nation reacts to the believed disparity in duties across trade agreements, countries with the largest U.S. trade surpluses are being targeted and affected the most by these sweeping reciprocal tariffs. Those who are the largest trading partners will be impacted the most, experiencing an increased tax on goods imported from the states. Although earlier this month (April 2025), U.S. recently announced a 90 day pause on all reciprocal tariffs - with the exception of China - the initial wave of tariffs following the declared “Liberation Day” has already set significant changes in motion. Both consumers and sellers can expect significant impacts, from rising prices and shifts in inventory sourcing to critical changes in supply chain fulfillment strategies. 

Key Countries and Tariff Changes 

On April 2, 2025 the United States announced sweeping 10% tariffs on all countries' imports into the U.S. as part of the president’s “Liberation Day” initiative, imposing even higher percentage tariffs on countries with significant trade deficits with the U.S. This action impacts over 60 trading partners, and we’ll dive into the key countries involved with these reciprocal tariff adjustments, affecting their economies and global commerce. 

China

China faces a reciprocal tariff rate of 34%, in addition to their existing 20% duties placed on all Chinese goods imports to the U.S. With China as the top supplier of goods to the U.S., the country accounts for $438.95 billion in imports (a whole 16.5% of U.S. goods imports) and a trade deficit of $295.40 billion. These new tariffs will impact Chinese exports to the U.S. such as batteries and solar components, leading to higher costs for production & import of these products for consumers and ecommerce brands. However, in a recent announcement, the reciprocal tariffs will exclude electronics such as smartphones and memory chips, one of China's biggest export sectors to the U.S from the new tariff list. 

European Union

The European Union (EU) will see a 20% reciprocal tariff rate, impacting its $605.76 billion in exports to the U.S. The new measures will significantly impact costs of machinery, automobiles & parts, luxury goods, specialty foods, and wine, all which are major export sectors for the EU. With a significant trade deficit of $235.57 billion, American consumers will expect to see supply chain disruption specifically in the automotive industry, as well as medicinal and pharmaceutical sectors.

Vietnam

South East Asia, specifically Vietnam, is a major exporter to the United States due to its low cost and high efficiency manufacturing. In the wake of reciprocal tariffs, Vietnam will now be charged a 46% reciprocal tariff rate on all imported goods to the U.S. The region is highly dependent on exporting and manufacturing with exports to the U.S. attributing for 30% of Vietnam's gross domestic product (GDP). With a trade deficit of $123.46 billion, Vietnam’s plea to eliminate all tariffs on the U.S.has not made an impact and consumers and distributors of the textiles, footwear, and furniture sectors can expect to experience higher costs and a significant job loss due to the increased costs.

Canada

Although exempt from the baseline reciprocal tariffs due to involvement in the United States-Mexico-Canada Agreement (USMCA), a free trade agreement between the North American countries, Canada remains one of the largest trade partners of the U.S. The country is subject to a 25% tariff rate on all Canadian imports outside of the USMCA trade deal, as well as an additional 10% tariff on Canadian energy and 25% tariff on steel, aluminum and foreign automobiles. Energy, machinery and equipment manufacturing sectors are expected to be impacted by the new levies and ecommerce brands importing from the U.S. can expect to experience higher manufacturing costs or disruptions.

Mexico 

Similar to Canada, Mexico has been exempt from the reciprocal tariffs placed by the U.S. due its involvement in the USMCA trade deal, however the country is still subject to recent tariff hikes. The U.S. has imposed a 25% tariff rate on the top trading partner for all goods that don’t comply with the UMSCA trade deal. Mexico, who exports a total of $454.8 billion in goods to the U.S. will also be imposed a 25% tariff on steel, aluminum and foreign automobiles alongside Canada. Key exports such as steel, aluminum, and agricultural products will be taxed with the new measures, and supply chain implications are bound to rise for many ecommerce brands who source packaging and canned goods from the country. 

What Reciprocal Tariffs Mean for Ecommerce Brands

Since U.S. tariffs are paid by American importers and consumers, these new reciprocal measures will likely shift sourcing away from high-tariff countries like China and Vietnam, reshape trade orders, and lead to higher prices for consumers. Many ecommerce and direct to consumer (DTC) brands who are wondering what impact these measures may have on their businesses may need to begin with diversifying their sourcing and suppliers for inventory needs. It may also be time to consider adjusting prices for imported products to cover higher production costs, as well as adjust lead times due to heightened customs processing seen at the U.S. border. 

In the wake of uncertain reciprocal tariff impacts, ecommerce owners who remain agile in their practices, monitor global updates closely, and explore domestic suppliers can stay ahead of the global supply changes. Flexible funding partners like Clearco are here to support brands maintain their cash flow while adjusting to the new economic trade measures. Get funding now to support your brand on its journey as it explores sourcing alternatives and launches pilot campaigns.

Please note that this information is subject to change over time and that the government of the United States is the best source of information regarding tariffs or changes to tariffs.