US to earn over $120 billion from new reciprocal tariffs on G7 imports

The U.S. is poised to earn more than $120 billion from new “reciprocal” duties imposed on imports from G7 countries, as outlined by an executive order signed by U.S. President Donald Trump.

The announcement comes as part of ongoing efforts to address trade imbalances between the U.S. and other major economies.

According to the American statistical service, the tariffs are part of a broader strategy to recalibrate the U.S.’s trade relations with the G7, Caliber.Az reports via foreign media.

The base tariff rate will be 10%, but the rates will be higher for certain countries, based on the trade deficit between the U.S. and each of the G7 members. The goal is to achieve a balance in trade by imposing higher duties on countries with which the U.S. has a significant trade deficit.

For EU members France, Germany, and Italy, the new duties will be set at 20%. Japan will face a 24% duty, while the UK will be subject to a 10% rate. In addition, Canada will have a 25% duty imposed on aluminum, steel, automobiles, and their parts, according to the U.S. Trade Representative’s office.

In 2024, U.S. imports from France totaled $59.9 billion, which means the new 20% tariff will generate nearly $12 billion in revenue for the U.S. budget. Imports from Germany, totaling $160.4 billion, will result in $32.1 billion in duties, while imports from Italy, valued at $76.4 billion, will generate $15.3 billion in revenue.

From Japan, which exported $148.2 billion worth of goods to the U.S. last year, the 24% tariff would bring in approximately $35.6 billion. The 10% tariff on British imports, which totaled $68.1 billion in 2024, will result in $6.8 billion for the U.S.

Canada, facing a 25% duty on its aluminum, steel, automobiles, and related parts, exported $73.7 billion worth of goods that will now be subject to the higher rate. This will bring the U.S. approximately $18.4 billion in tariff revenue from Canadian goods.

In total, these new reciprocal duties will result in over $120.1 billion in revenue for the U.S. government, highlighting the growing impact of tariffs in the U.S.'s trade strategy. This new move is a significant part of the Trump administration's efforts to tackle the longstanding trade deficits and reassert control over U.S. trade relationships with major economies.