“Every Country” Except China Could Get 10% Tariff Rate, Treasury Secretary Says

“Every Country” Except China Could Get 10% Tariff Rate, Treasury Secretary Says

By Steven Orlowski, CFP, CNPR, Orlowski Financial Counsel

April 9, 2025 — In a bold policy declaration that could significantly reshape global trade dynamics, U.S. Treasury Secretary Janet Yellen said that the Biden administration is considering implementing a flat 10% tariff rate on imports from “every country”—with one major exception: China.

Speaking at a press conference in Washington, D.C., Yellen emphasized that the move is part of a broader effort to create a more balanced and strategic approach to trade policy, while reducing American dependence on Chinese manufacturing and protecting critical supply chains.

“A Strategic Realignment”

“China remains the single most significant challenge to fair global trade practices,” Yellen stated. “While we want to encourage a rules-based international trading system, China’s continued use of subsidies, intellectual property theft, and market distortions requires a differentiated approach.”

According to Yellen, the proposed tariff regime would set a uniform 10% tariff rate on goods from most trading partners, in contrast to the often complex web of current rates, waivers, and country-specific arrangements. The key exception would be China, which could face significantly steeper tariffs, possibly in the 25%–60% range, depending on the sector.

A Break from Past Policy

The announcement marks a departure from previous trade frameworks under both Democratic and Republican administrations, which traditionally sought to promote lower tariffs and multilateral agreements. Critics argue that a global 10% tariff, even with a China carve-out, risks sparking retaliation and inflationary pressures.

However, supporters of the policy say it levels the playing field and incentivizes domestic manufacturing. “This is not protectionism for its own sake,” Yellen said. “It’s about building economic resilience and ensuring that American workers and businesses are not undercut by unfair practices.”

China Pushes Back

The Chinese Ministry of Commerce quickly responded to the comments, calling the proposal “discriminatory and hostile.” A spokesperson warned that such a policy could lead to “countermeasures” that would damage bilateral economic ties and further strain an already tense relationship.

Beijing has long rejected accusations of unfair trade practices, instead portraying U.S. tariffs as politically motivated and economically reckless.

Economic Impact Unclear

Analysts remain divided on the impact such a tariff strategy would have on inflation, global supply chains, and geopolitical alliances. Some argue that the 10% flat rate may simplify compliance and reduce loopholes, but others fear it could raise consumer prices, especially in sectors heavily reliant on imports.

“A global tariff floor like this could discourage trade at the margins and dampen economic growth,” said Jennifer Lee, a senior economist at BMO Capital Markets. “But it depends on how exemptions and enforcement are handled.”

Looking Ahead

The administration has not yet committed to a timeline for implementing the new tariff regime, and the proposal would likely face legal and legislative hurdles. Congress may need to authorize parts of the plan, and legal challenges under WTO rules could arise.

Still, Yellen’s remarks signal a clear pivot toward a more muscular, targeted trade strategy that isolates China while reshaping the broader global trade landscape.

As the U.S. recalibrates its approach to international commerce, the rest of the world will be watching closely—particularly nations caught in the crossfire of U.S.-China economic rivalry.