President Donald Trump announced a series of tariffs on his trading partners, describing the “Day of Liberation” on April 2, claiming that the punitive measures would return industry and employment to the United States by fighting what he claims is an unfair duty imposed on American goods.
Trump’s latest tariffs, announced Wednesday and combined with a series of similar moves since taking office on January 20th, mark the most dramatic escalation of US tariffs in almost a century.
Some countries have said they will retaliate, increasing the risk of a global trade war marked by The-for-Tat tariffs.
This is an important takeaway from the latest US tariff announcement.
Trump’s radical new mutual tariff regime
Trump was effectively blowing up the global trading system that had existed for over 75 years, based on the premise that encouraging free trade would ultimately be beneficial to all countries.
The Trump administration slapped a new 10% baseline tariff on imports from all countries, even those that impose low tariffs on US products. And in countries that accuse the administration of aggressively blocking US goods, penalties will be further advanced with more rapid, retaliatory tariffs.
“We’re charging about half of what they’re and charging us, so the tariffs aren’t going to be completely reciprocal,” Trump said Wednesday afternoon. “I could have done that, but it would have been tough for many countries, and we didn’t want to do it.”
Instead of matching the European Union’s 39% tariffs on US goods, for example, the US would impose a 20% obligation, he said. In China, which already faces 20% tariffs, an additional 34% tax will be imposed, bringing the total to 54%.
The administration uses its own calculations to argue that other countries are leviing much higher tariffs on the United States.
Generally, US tariffs are lower than those in many other countries. According to the World Trade Organization (WTO), the average US tariffs weighted by actual goods traded is only 2.2%. In comparison, the EU averages 2.7%, China 3%, and India 12%.
These WTO figures do not take into account the recent tariffs imposed by the Trump administration or obligations under free trade agreements such as the US-Mexico-Canada Agreement.
https://t.co/cdtzf2sfmz
– Donald J. Trump (@RealdonaldTrump) April 2, 2025
10% tariff
Invoking the International Emergency Economic Force Act of 1977, Trump announced 10% tariffs in all countries scheduled to come into effect on Saturday, April 5th.
Countries facing just 10% tariffs include:
UKAustraliaSingaporeBrazilNew ZealandTurkieUnitedArab EmiratesSaudi ArabiaChile
Custom tariffs for “worst criminals”
Approximately 60 countries face separate tariffs, and it is calculated to be about half of the tariffs and other barriers the Trump administration claims to charge the United States.
The key trading partners eligible for these customized custom duty fees are:
China: Cambodia 54%: 49% Laos: 48% Vietnam: 46% Sri Lanka: 44% Thailand: 36% Taiwan: 32% South Africa: 30% India: 26% Japan: 24% European Union: 20% Philippines: 17%
The new tariffs will come into effect on April 9th at 00:01 am ET (04:01 GMT).
Mutual tariffs do not apply to certain products such as copper, pharmaceuticals, semiconductors, wood, gold, energy and “specific minerals not available in the United States,” according to the White House fact sheet.
It also imposes a 25% tariff on all foreign-made cars. These duties are set to take effect in the middle of the night on Thursday, April 3rd.
Countries and businesses promise retaliation
It shows that multiple countries will retaliate.
“China is firmly opposed to this and will take measures to protect its own rights and interests,” China’s Commerce Ministry said in a statement Wednesday.
The European Commission’s Ursula von der Leyen said the EU is also preparing further measures. “We have already finalized the package of our first measures to deal with steel tariffs,” she said.
Japan said it has kept all options open to meet its “very unfortunate” obligations.
Volkswagen has announced that it will implement “import fees” on vehicles affected by the 25% tariff, the Wall Street Journal reported Wednesday.
The German automaker will temporarily suspend rail freight on vehicles from Mexico and keep it in port vehicles arriving by ship from Europe, citing a note to retailers, the report said.
However, Nick Malo, Asia’s leading economist in the Economist Intelligence Unit, said Asian countries are willing to take on Trump and risk further retaliation.
“China is likely to release some kind of retaliation against the US. Japan said it would consider some kind of retaliation obligation, but we expect US agriculture to be primarily in the crosshairs there,” Malo told Al Jazeera.
“That being said, many other Asian markets are not in a position to retaliate in reality,” he said.
“Staff like Vietnam, Malaysia and the Philippines are suffering from higher tariffs, but the size of the economy, dependence on foreign trade and the importance of the US as a source of ultimate demand really constrains our ability to adopt Hawkish’s attitude here.”
US business groups brace for their impact
Jay Timmons, president and CEO of the National Manufacturers Association, described Trump’s announcement as “complicated,” saying manufacturers are trying to determine the impact of their business.
“Manufacturers’ interests are not high. Many US manufacturers are already operating at thin margins. The high costs of new tariffs threaten our ability to compensate investments, jobs, supply chains and other countries in the United States and lead as an outstanding manufacturing superpower,” Timmons said in a statement.
Michelle Korsmo, president and CEO of the National Restaurant Association, said restaurant owners are concerned that tariffs will boost costs and increase customer prices.
“Restaurant operators know that consumers are very sensitive to costs and keeping menu prices rising at 30%, but food costs have increased by 40% over the past five years,” Korsmo said in a statement.
Scott Paul, president of Alliance for American Manufacturing, offered a more aggressive assessment, saying that tariffs put US manufacturers and workers first priority.
“These hardworking men and women have seen unfair trade cut the ground from under their feet for decades. They deserve a chance to fight,” Paul said in a statement.
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