President Donald Trump’s highly-anticipated new round of tariffs is here, and it could mean increased prices on a range of goods Americans rely on.
On Wednesday, Trump signed an executive order announcing reciprocal tariffs on all countries that have placed tariffs on US goods. These tariffs fall on Trump’s so-called “Liberation Day,” which the president has been touting for weeks as the day when his expansive trade plan would drop.
“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump said during Wednesday remarks.
The motivation for the reciprocal tariffs: “They do it to us, and we do it to them,” Trump said. “Very simple. Can’t get any simpler than that.” He added that all of the tariffs would have a baseline 10% tariff rate.
Trump said during his remarks that he would charge countries “approximately half” of what those countries have been charging the US. Trump said that would amount to a 32% tariff on goods from China, 20% tariff for the European Union, 32% tariff for Taiwan, and 26% tariff for India.
Trump also announced a 25% tariff on all car imports into the US. He did not mention any new tariffs on Canada or Mexico during his remarks.
In the weeks leading up to April 2, Trump signaled a range of tariffs he was planning to implement. They included a 25% tariff on goods from Canada and Mexico, a 25% tariff on all car and car part imports into the US, tariffs on agricultural goods, and reciprocal tariffs on all countries that have placed tariffs on US goods. A 25% tariff on steel and aluminum imports is already in effect.
The reciprocal tariffs are the broadest category, and Trump previously indicated that there would be “flexibility” in terms of the scope of the tariffs he would end up imposing on those countries.
These tariffs are likely to increase prices on impacted goods, and while some companies might choose to absorb some of the costs, consumers are set to shoulder most of the burden.
Ahead of Trump’s tariff announcement, the White House wrote in a press release on Wednesday morning that tariffs will “level the playing field for American workers and businesses.” However, markets and consumers have already been feeling financial strains due to the ongoing uncertainty with Trump’s trade plans.
“When the president doesn’t have a clear strategy or direction, it is extremely difficult for businesses in particular and consumers as well, to plan for the future, and that’s why you’re seeing so much uncertainty in the consumer market right now and so much uncertainty in the business community,” Alex Jacquez, an advisor on the National Economic Council under former President Joe Biden, told reporters on a Tuesday press call.
The US is likely to see retaliatory tariffs from impacted countries following Trump’s announcement. Canada’s Prime Minister, Justin Trudeau, previously said he would place tariffs on American goods until Trump’s tariffs were withdrawn.
The United Auto Workers union previously lauded the president’s plan to place a 25% tariff on all cars and car parts imported into the US, saying it would bring more jobs back into the US auto industry.
“These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country,” UAW President Shawn Fain said in a statement.
