The Glossary
Reciprocal Tariff
The April 2025 framework imposing a 10% global baseline plus country-specific surcharges — 34% for China.
Definition
Announced April 2, 2025, the reciprocal-tariff regime replaced trade-deficit arithmetic with a formula covering nearly all trading partners: a 10% baseline, with higher rates for countries running large surpluses. China's assigned rate was 34%, stacked atop existing Section 301 and IEEPA duties. Tit-for-tat rounds on April 8-9 pushed additional U.S. duties to 145% before the Geneva truce. Most Chinese consumer electronics were excluded on April 11, and the Geneva Joint Statement of May 12 suspended most of the reciprocal layer.
Why it matters
"Reciprocal" reframed tariff policy from targeted punishment to across-the-board rebalancing — the largest single increase in U.S. average tariff levels since the 1930s.