On Wednesday, US President Donald Trump imposed mutual tariffs that would be wiped out on his US trading partners.
This day was called “Liberation Day” by Trump. Trump signed an executive order that imposed a 10% tariff on almost every country, imposing additional tariffs on countries accusing the United States of charging higher taxes on American goods.
Taxation has sent shockwaves through global markets, spurring criticism from world leaders. China and the European Union are already responding with retaliation measures, indicating the risks of a global trade war.
China’s Commerce Department has asked Washington to cancel the tariffs. “There are no winners in the trade war. There is no way for protectionism,” the ministry said in a statement.
A 10% flat tariff will come into effect on April 5th, with other tariffs going into effect on April 9th.
What are the new tariffs announced?
Trump is targeting around 60 countries with customized mutual tariffs. These are countries chosen to charge higher collections for US goods. The steeper rates apply to the US’s major trading partners and small economies, as well as both allies and rivals.
China is hit by 54% tariffs, including the previous 20% tax. Lesotho faces 50% tariffs. Cambodia 49%. Nearby Vietnam is 46%.
“The tariff hike was more aggressive than expected,” Lin Song, chief economist at Da Hua Academy at the Bank of Netherlands, told Al Jazeera.
“Many people were expecting a 10-20% tariff range. This kind of aggressive move could possibly risk retaliation from larger players, but smaller countries could choose to negotiate at a lower rate.”
The EU was also hit by a 20% tariff.
A 10% baseline tariff applies to all imports that come to the US. Among the countries facing a 10% taxation are the UK, Australia, Singapore, Brazil and the United Arab Emirates.
There are no additional tariffs in Canada and Mexico. Both countries are already subject to 25% tariffs, excluding products covered by free trade agreements with the United States.
Explore the table below to see which countries were the least and most hits.
Which countries export the most to the US?
According to the US International Trade Agency, in 2024, Mexico exported $55.9 billion in goods to the United States.
This was followed by China, exporting $43.89 billion. Canada, $412.7 billion. Germany $160.4 billion; Japan $14.82 billion.
Which countries are most affected?
Trump did not impose additional tariffs on Canada or Mexico, but these countries are most likely to be affected by US taxes given the high percentage of exports to the US.
According to data from the United Nations Governor General, in 2023, 77.6% of Canada’s total exports were sent to the United States. Mexico’s total exports to the US were 79.6%.
In contrast, the US is the largest export destination in the EU, but the bloc has many other countries that buy its products. In 2023, the US accounted for less than 20% of EU exports.
Similarly, heavy tariffs apply to Chinese products, but only 14.8% of China’s exports were sent to the US in 2023. So, while the US was China’s biggest export market that year, it means that its vast portfolio of other export destinations, including China, Germany, India and Mexico, hurts more than Canada and Mexico.
Still, tariffs could affect how China approaches future trade with the US, according to experts.
“The escalation of tariffs and the continued unilateral measures could deepen the erosion of trust in the global trading system and encourage China to diversify its partners and reduce trust in the US market.”
How does this affect our consumers?
In 2023, the US imported goods worth $3 trillion. That’s about $1 trillion more than exports.
US consumers are already facing higher car prices, following Trump’s 25% tax on all cars and auto parts that came into effect on Wednesday, April 2nd. Because tariffs also apply to automotive parts, cars manufactured in the US using imported parts are more expensive.
“The increase in costs will cause significant disruption throughout the supply chain, and perhaps most importantly, lead to a significant increase in the costs of American consumers of vehicles,” the Detroit Regional Chamber of Commerce and My Cart of the Automobile and Mobility Association said in a letter.
On Thursday, New Zealand Prime Minister Christopher Luxon responded to the 10% tariffs imposed on the country. “It will increase US consumer prices, increase inflation, slow growth, and put real pressure on the world.”
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