“Liberation Day” has arrived, which Trump said will be the day that America starts to “become wealthy again.” To accomplish this, Trump will impose reciprocal tariffs on countries that he believes are “ripping off” the United States. One of the major tariffs imposed was on the auto sector, which saw a 25% levy added to foreign imports. It is worth noting that both these developments were already expected, so they came as no surprise. However, what was surprising was the magnitude of tariffs imposed on various countries.
In fact, the administration plans to impose tariffs that equate to roughly half of the ones charged by other countries. For example, China will be charged 34% tariffs since it charges the U.S. 67%. The only exceptions to the rule were the countries with a 10% tax, which will have a matching 10% tax. However, there are some who suggest that the numbers presented by the Trump administration are likely not totally accurate with regards to the amount foreign countries actually charge the U.S. on a weight-adjusted basis
The full list of tariffs that the U.S. plans to impose on foreign countries that was provided by Trump during the speech was as follows:
- China – 34%
- European Union – 20%
- Vietnam – 46%
- Taiwan – 32%
- Japan – 24%
- India – 26%
- South Korea – 25%
- Thailand – 36%
- Switzerland – 31%
- Indonesia – 32%
- Malaysia – 24%
- Cambodia – 49%
- United Kingdom – 10%
- South Africa – 30%
- Brazil – 10%
- Bangladesh – 37%
- Singapore – 10%
- Israel – 17%
- Philippines – 17%
- Chile – 10%
- Australia – 10%
- Pakistan – 29%
- Turkey – 10%
- Sri Lanka – 44%
- Colombia – 10%
These tariffs above will go into effect on April 9. All other countries not mentioned on the list are subject to a 10% baseline tariff that will go into effect on April 5. In addition, Mexico and Canada will continue to face the 25% fentanyl tariffs that are already in place, while USMCA-compliant goods (the trade agreement between the U.S., Mexico, and Canada) will continue to remain exempt. As a result, the major indices sank in after-hours trading following the announcement, with the Nasdaq 100 ETF (QQQ) falling 3%.
