Topline
President Donald Trump announced Wednesday the U.S. would impose “reciprocal tariffs” on U.S. trade partners based on the total cost of protective barriers and taxes they charge the U.S.—his most sweeping tariff announcement to date that will affect about 60 countries.
President Donald Trump speaks during a “Make America Wealthy Again” trade announcement event in the … More
Key Facts
Trump, in a highly anticipated Rose Garden address, titled “Make America Wealthy Again,” announced the individual tariffs are a “discounted” rate based on a calculation of the total cost of tariffs and protective barriers each country imposes against the U.S.
Chinese products will be subject to a 34% tax, for example, goods from the European Union will be taxed at 20%, Vietnam at 46%, Japan at 24% and Indian imports at 26%, according to a chart Trump held while making the announcement.
Trump said the rates were about half of the total calculation for the charges each country imposes against the U.S., calling the approach “kind.”
Canada and Mexico, notably, were not included in the chart Trump held—Trump delayed a 25% tariff on most imports from the U.S. neighbors for a month, meaning it was supposed to take effect around this time.
Trump also said every country will have a baseline tariff of 10%, which are included in the numbers on the chart Trump used to debut the rates.
The president also confirmed a 25% tariff on all imported autos would take effect at midnight.
When Will The Tariffs Take Effect?
Immediately, White House press secretary Karoline Leavitt told reporters Tuesday. A 25% tariff on imported car parts is scheduled for no later than May 3.
What Tariffs Has Trump Already Imposed?
A 25% tariff on all products from Canada and Mexico not subject to the U.S.-Mexico-Canada trade agreement, a 10% additional tariff on Chinese imports and a 25% tariff on all steel and aluminum imports.
Key Background
Few details were known about Trump’s plans headed into Wednesday’s announcement, which he was “perfecting” just hours earlier, Leavitt told reporters Tuesday. Trump, on the campaign trail, had repeatedly floated a 20% universal tariff on all goods imported to the U.S., though he’s suggested more recently he would tax goods from other countries according to the levies they impose on U.S. products and has also proposed sector-specific tariffs. Treasury Secretary Scott Bessent said last month the tariffs would target the “dirty 15,” or the 15% of countries that account for the bulk of trade with the U.S. Trump is also expected to announce Wednesday he’d trigger 25% tariffs on all imports from Canada and Mexico that he threatened in March, then delayed for a month for products subject to the U.S.-Mexico-Canada trade agreement.
Further Reading
Here’s What To Know About ‘Liberation Day’—From Announcement Time To What Trump May Target (Forbes)
