President Donald Trump unveiled sweeping new tariffs on Wednesday, which the White House dubbed “Liberation Day.”
“This is one of the most important days in my opinion in American history,” Trump said during a press conference at the Rose Garden, outside the White House. “It’s our declaration of economic independence.”
The fresh round of tariffs — hitting allies and enemies alike, with tariffs up to 50% — also included minor trading partners and marked a significant escalation from previous levies slapped on some foreign goods in recent weeks.
Plan includes baseline tariff, plus higher rates for some countries
The new tariffs feature two key policies: A uniform 10% tariff for all imports and “reciprocal” tariffs imposed on many nations that place duties on U.S. imports.
The universal 10% tariff amounts to a wide-ranging trade barrier that will touch every product that enters the U.S.
Trump said the measure would ensure foreign firms pay a price for benefits derived from the purchasing power of U.S. consumers.
“Foreign nations will finally pay for the privilege of access to our market,” Trump said.
In addition to the universal tariff, Trump said, the U.S. will impose tariffs on many countries that levy U.S. goods. Trump described such duties as “reciprocal tariffs,” though he noted that the U.S. would impose tariffs at half the level of the trade barriers slapped on U.S. products.
“We will charge them approximately half of what they are and have been charging us,” Trump said. “We’re kind people.” He added later in his remarks, “This is not full reciprocal. This is kind reciprocal.”
The move departs from statements made by Trump in recent days vowing to impose reciprocal tariffs that match the trade barriers of other countries.
Which countries will see reciprocal tariffs?
The reciprocal tariffs will target roughly 60 countries identified by the Trump administration as the “worst offenders,” White House officials said.
The White House calculated the cumulative cost of trade barriers imposed by each of the target nations, including tariffs as well as non-monetary measures. In each case, the U.S. will impose a reciprocal tariff rate at 50% of the level attributed to a given country.
Under the “reciprocal” tariffs plan, the U.S. will impose the following levies on goods imported from the following countries at these rates:
- China: 34%
- European Union: 20%
- Japan: 24%
Both China and Japan were among the top five importers to the U.S., according to the U.S. Trade Representative. China supplied more than $536 billion in imported goods in 2022 and Japan supplied more than $148 billion. The total value of goods imported from the European Union in 2022 was more than $553 billion.
The 34% reciprocal rate for China is in addition to a previous 20% tariff Trump slapped on the nation — bringing the effective tariff rate on one of the U.S.’s biggest trading partners to 54% total.
What’s not covered by the new tariffs?
Mexico and Canada — two of the U.S.’s biggest trading partners — are not affected by the reciprocal tariffs. Goods that fall under the U.S.-Mexico-Canada free-trade agreement will continue to not see tariffs, while non-USMA goods are already under a 25% tariff, announced by Trump last month.
In addition, some goods will not be subject to the new reciprocal tariffs, including steel and aluminum imports, which are already under a 25% tariff that went into effect last week. The reciprocal tariffs also do not include copper, pharmaceuticals, semiconductors and lumber.
When do the new tariffs take effect?
The universal 10% tariff is set to take effect on the morning of April 5, and the reciprocal tariffs will hit products on the morning of April 9, White House officials said.
Economists widely expect tariffs to raise prices for U.S. consumers, since importers typically pass along a share of the tax burden in the form of higher costs.
“For decades, the U.S. slashed our trade barriers on other countries while those nations placed massive tariffs on our products,” Trump said.
“This all happened with no response from the United States of America — none whatsoever,” Trump added. “But those days are over.”
ABC News’ Jack Moore contributed to this report.
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