How Did Russia, Canada And North Korea Avoid Trump’s Reciprocal Tariffs?

US President Donald Trump's announcement of reciprocal tariffs on Wednesday brought relief to Canada and Mexico, as both countries were excluded from the latest wave of import duties. The new tariffs, starting at a baseline of 10% and reaching up to 46%, have been imposed on multiple nations, but Russia and North Korea also managed to escape the list.

Trump's Justification for the Tariffs

Announcing the sweeping trade measures from the White House, Trump stated that "our country has been looted, pillaged, raped, plundered" by foreign nations. His latest tariff initiative aims to counteract what he perceives as long-standing trade imbalances detrimental to the US economy.

Why Canada, Mexico, Russia, and North Korea Were Spared

Despite their exemption from the April 2 reciprocal tariffs, Canada and Mexico are not entirely free from trade restrictions. Existing tariffs on goods from these countries remain in effect, with additional levies on automotive products set to take effect on Thursday.

Trump had earlier imposed 25% tariffs on Canadian and Mexican imports, along with a lower 10% rate on Canadian energy and potash. These measures continue to apply, preventing the need for additional reciprocal tariffs. Furthermore, goods entering the US under the US-Mexico-Canada Agreement (USMCA) will continue to be exempted, according to AFP.

However, should Canada and Mexico seek to renegotiate these levies, they will still encounter Trump's latest baseline tariff rates.

"We are going to fight these tariffs with counter-measures. We are going to protect our workers," Canadian Prime Minister Mark Carney said in response, according to Bloomberg. Meanwhile, Mexican President Claudia Sheinbaum is expected to announce Mexico's official stance in a press conference on Thursday.

Russia and North Korea were also notably absent from Trump's so-called 'Liberation Day' tariff list. The White House clarified that Cuba, Belarus, North Korea, and Russia were not included in the tariff scheme as they are already under extensive US sanctions, which effectively limit any substantial trade.

Nations Affected by Trump's Reciprocal Tariffs

Under the new policy, several countries will face steep tariff hikes:

• India - 26%
• European Union - 20%
• Vietnam - 46%
• Japan - 24%
• South Korea - 25%
• Taiwan - 32%
• Thailand - 36%
• China - 34%

China, which recorded a $295 billion trade surplus with the US in 2024, will see tariffs of 34%, an increase that Treasury Secretary Scott Bessent says rises to 54% when combined with the 20% tariffs imposed in February over the US fentanyl crisis.

During his 2024 election campaign, Trump had promised to impose a 60% tariff on Chinese goods, signaling further trade tensions ahead. With these latest measures, the US trade landscape is set to undergo a dramatic shift, potentially reshaping global commerce for years to come.