President Trump unveiled new global tariffs Wednesday, imposing a 10% levy on almost all imports and higher rates on roughly 60 countries with significant trade deficits with the U.S.
China faces a 34% reciprocal tariff, the European Union 20%, Vietnam 46%, and Taiwan 32%.
Trump stated that foreign nations would “pay for the privilege of access to our market” during remarks at the White House Rose Garden.
The administration determined “worst offenders” based on levies, currency manipulation, and trade barriers on US exports; Trump claimed China charges 67% on US imports.
A 25% tariff on car imports, previously announced, took effect Wednesday at midnight, with additional levies on auto parts expected in May.
“Jobs and factories will come roaring back into our country, and you see it happening already,” Trump said.
Critics argue these tariffs will increase prices and reduce consumer spending, potentially lowering business expansion and investments; Goldman Sachs analysts increased their recessionary odds for the next year from 20% to 35% earlier this week.
The S&P 500 and Nasdaq Composite closed in the green, gaining 0.7% and 0.9%, respectively, but futures dipped into the red after the announcement; The S&P 500 slipped almost 2% in after-hours while the Nasdaq Composite lost 2.7%.
Bitcoin and ether fell about 2.4% following Trump’s announcement.
Sevens Report Research founder Tom Essaye said markets had likely priced in reciprocal tariffs between 15% and 20%.
The Trump administration finalized these plans late Tuesday evening.