Washington- President Donald Trump today announced tariffs of at least 10% on practically all goods coming into the United States.
He also imposed higher rates on dozens of countries that have the highest trade deficits with the US.
Here are the key things to know from his Rose Garden announcement:
Baseline tariff: Trump’s policy will put in place a 10% tariff on all goods from all countries except those compliant with the USMCA free trade agreement between Mexico, Canada and the United States (non-compliant goods will continue to be charged at a 25% rate). Importers of goods from other nations will begin paying the baseline 10% tariff on Saturday at 12:01 am ET.
Reciprocal tariffs: A group of about 60 or so countries will be charged a tariff at half the rate they charge the United States. Those reciprocal tariffs will go into effect April 9 at 12:01 am ET, according to a senior White House official.
Auto tariffs: Trump said that the US will impose a 25% tariff on all foreign-made automobiles effective at midnight ET to address “horrendous imbalances” that have impacted the country’s “industrial base” and put national security at risk.
What Trump said: Billing his tariff announcement as “one of the most important days” in American history, Trump said it is a “declaration of economic independence.” The president said the country “can no longer continue with a policy of unilateral economic surrender” and said he is putting Americans first.
Market reaction: Stocks had closed higher ahead of Trump’s tariff announcement, but began to slide as Trump revealed his administration’s plan for rolling out tariffs. Dow futures tumbled 256 points, or 0.61%. S&P 500 futures slid 1.69%. Futures tied to the Nasdaq 100 fell 2.54%.
Europe prepares countermeasures to Trump’s tariffs, calling them a “major blow to the world economy”
The European Union is preparing countermeasures to US President Donald Trump’s announcement of 20% tariffs on imports from the bloc, which it called a “major blow to the world economy.”
The EU is a major US trading partner. Last year, it was the largest single market for US goods exports, ahead of America’s neighbors Canada and Mexico, based on figures from the United States Census Bureau.
“President Trump’s announcement of universal tariffs on the whole world including the European Union is a major blow to the world economy. I deeply regret this choice,” Ursula von der Leyen, head of the European Union’s executive arm, said Thursday, adding the tariffs would be felt “immediately.”
Trump on Wednesday launched a historic global trade war, announcing sweeping global tariffs on dozens of nations, from Nicaragua to Cambodia. The tariffs come on top of previously imposed taxes on imports of steel, aluminum and cars.
“Let’s be clear-eyed about the immense consequences. The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism,” von der Leyen said from Samarkand, Uzbekistan.
While the European Union would prefer to work with the US to reduce trade barriers, “Europe is ready to respond,” she said.
“We are already finalizing the first package of countermeasures in response to tariffs on steel, and we are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”
