Key Takeaways
Trump’s new tariff policy imposes a 10% baseline on nearly all imports and 25% on foreign-made cars.
Reciprocal tariffs targeting 60 nations begin April 9, with China at 34% and Vietnam at 46%.
President Donald Trump announced today a sweeping new tariff policy that will impose a minimum 10% levy on nearly all goods entering the United States, effective April 5.
The policy excludes Canada and Mexico, with both countries exempt from the 10% baseline tariff and reciprocal levies for now.
However, non-compliant goods from those nations will continue to face a 25% tariff, originally imposed on the grounds that they were failing to curb the flow of drugs and crime into the United States. The 10% tariff would only apply if the current 25% duties on Canadian and Mexican imports are lifted or suspended.
In addition to the general import levies, the plan also imposes a separate 25% tariff on all foreign-made automobiles, which takes effect at midnight ET.
Building on that, the administration is also implementing “reciprocal” tariffs on approximately 60 nations, calculated at half their current total trade barriers on US exports.
Among the major US trade partners impacted, China will face a 34% tariff, the EU 20%, Vietnam 46%, Japan 24%, India 26%, ### 32%, Indonesia 32%, and Brazil 10%. These country-specific rates take effect April 9.
“This is not full reciprocal. This is kind reciprocal,” Trump said.
Trump declared a national emergency linked to the US trade deficit, which exceeded $918 billion in 2024, invoking the International Emergency Economic Powers Act to authorize the measures.
“For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. But now it’s our turn to prosper,” Trump said from the White House Rose Garden. “I blame former presidents and past leaders who weren’t doing their job. They let it happen — to an extent that nobody can even believe,” he added.
The administration projects that the tariffs will generate hundreds of billions in new revenue and boost domestic industry.
Trump said the plan aims to open foreign markets, dismantle trade barriers, and increase production at home, which he believes will lead to stronger competition and lower prices for consumers.
Markets reacted swiftly to the announcement: Bitcoin briefly surged to $88,000 before settling at $84,500, the 10-year US Treasury yield declined, and futures tied to major US indexes fell sharply.
S&P 500 futures dropped 1.9%, while Nasdaq 100 futures slid 2.7% as investors absorbed the full scope of Trump’s sweeping trade action.