President Donald Trump has unveiled a new trade policy, marked by significant tariff rates during his “Liberation Day” announcement in the White House’s Rose Garden. Notably, tariffs reach as high as 34% on China and 26% on India, with a baseline rate of 10% set for all countries. In total, the tariffs also include 20% on the European Union, 46% on Vietnam, and 32% on Taiwan.
The White House clarified that the 34% tariff on China is supplementary to an existing 20% rate, bringing the total tariff on Chinese imports to 54%. Following the announcement, the US stock market experienced a substantial decline, with significant drops in indices like the Dow Jones, which fell by 1,007 points or 2.3%. Major companies such as Nike and Apple also saw share prices fall by approximately 7%.
The United States has opted not to impose new tariffs on Mexico and Canada, its largest trading partners, maintaining their exemption from the 10% baseline tariff added to other countries. Goods under the United States–Mexico–Canada trade agreement will mostly remain tariff-free, though automotive exports will face a tariff beginning April 3, and steel and aluminum will still incur a prior 25% tariff.
In contrast, new tariffs targeting technology imports signal serious concerns for tech companies that produce goods in affected countries. President Trump announced a hefty 34% reciprocal tariff on China—home to significant manufacturing for companies like Apple. Analyst Dan Ives from Wedbush Securities highlighted worries regarding pricing and margins, especially as Apple’s stock fell 6.7% in after-hours trading. Import duties will also be increased on countries like Taiwan (32%), South Korea (25%), and Japan (24%), impacting semiconductor production crucial for many tech firms. Following these developments, the Nasdaq dropped over 12% since February.
European leaders like Italian Prime Minister Giorgia Meloni expressed discontent with the U.S. tariff decisions, arguing they could foster a trade war that may weaken Western economies. She emphasized Italy’s commitment to finding a mutual agreement to shield its economy while engaging with other European allies.
Swedish Prime Minister Ulf Kristersson expressed on social media a desire to avoid growing trade barriers and a trade war with the US, aiming instead for trade and cooperation that benefits citizens. Similarly, Manfred Weber, president of The European People’s Party Group, labeled Donald Trump’s tariffs as counterproductive, stating that they damage fair trade and create resentment rather than liberation. Irish Prime Minister Micheal Martin considered the tariffs “deeply regrettable,” advocating that they do not benefit anyone and highlighting the importance of protecting Irish jobs and the economy.
In a recent announcement, President Trump revealed a 10% tariff on imports from all countries, citing a national emergency due to the trade deficit, asserting it threatens American security and lifestyle. This move has faced significant backlash from trade advocates who claim it will lead to higher prices for consumers, hinder investment, and slow economic growth. Experts from the Cato Institute noted that tariffs primarily benefit corporations and those who exploit the US’s diminished global standing, as costs are often transferred to consumers. They asserted the consensus among economists that tariffs ultimately harm the economy rather than assist it.
On April 2, 2025, President Trump delivered a lengthy speech announcing the implementation of reciprocal tariffs on approximately 90 countries, alongside a universal baseline tariff of 10% on all U.S. trading partners. Reciprocal tariffs are designed to impose taxes on U.S. imports that correspond to duties that other nations levy on American exports. The Trump administration plans to set these tariffs at around half the rate charged by other countries, indicating a potential openness to renegotiate trade agreements. Economists suggest that if these tariffs are intended to encourage negotiations, their duration may be shorter than other tariffs, depending on the willingness of trade partners to engage in discussions.
The minimum baseline tariff of 10% is set to begin on April 5, with Trump asserting that it aims to “rebuild our economy and to prevent cheating.” During his address, he highlighted various trade imbalances and emphasized the concept of reciprocity—stating that if other countries impose tariffs on U.S. goods, the U.S. will reciprocate. In the Rose Garden, Trump presented a chart illustrating the new tariff rates applicable to each country. The overall objective of these measures is to rectify perceived trade imbalances and strengthen the U.S. economy by addressing unfair trading practices.
On April 2, 2025, President Trump unveiled a chart detailing “reciprocal tariffs” aimed at countering tariffs imposed by other countries on U.S. goods. He announced significant rates, including 34% for China, 46% for Vietnam, and 20% for the European Union, among others, with Cambodia facing the highest at 49%. These tariffs are set to take effect on April 9. Trump emphasized the urgent need for these measures, stating that the U.S. can no longer sufficiently produce essential goods like antibiotics and electronics, relying heavily on imports for crucial supplies. He described the current trade deficits not only as an economic issue but as a national emergency threatening the country’s security and way of life. He expressed a commitment to revive American industry through these tariffs, declaring, “This is Liberation Day.” Trump positioned April 2 as a transformative moment, proclaiming it a day for reclaiming America’s industrial destiny. The announcement intends to foster domestic production and mitigate dependency on foreign imports, framing it as a critical step to ensure national safety and economic resilience. By implementing these tariffs, the administration aims to bolster American competitiveness and address longstanding trade imbalances. The President’s rhetoric reflects a broader agenda to reassert U.S. sovereignty in global trade relations.
Canadian Prime Minister Mark Carney responded strongly, declaring that Ottawa would counteract Trump’s tariffs. Meanwhile, South Korea’s acting President Han Duck-soo instructed the Ministry of Trade, Industry and Energy to prepare emergency support for adversely affected sectors and to engage in negotiations with the US.
On the other hand, Australian Prime Minister Anthony Albanese expressed discontent, labeling Trump’s move as ‘not the act of a friend’. Trump’s tariff policy is expected to affect over 180 countries and regions, with considerable ongoing scrutiny regarding its broader implications. Major retailers like Five Below and Dollar Tree recorded drops of 15% and 11%, respectively, while tech stocks faced declines amid rising uncertainties.
