Trump’s “Liberation Day” imposes global tariffs
United States President Donald Trump has announced sweeping new tariffs set to take effect in April, sending shockwaves through global markets and raising fears of an escalating trade war. Aimed at curbing what the administration calls “unfair foreign trade practices,” these tariffs could reshape global supply chains and directly impact consumer prices and international diplomacy.
These tariffs are set to take effect in two phases:
On April 5th, 2025, a universal baseline of 10% will be imposed on all imports into the United States.
On April 9th, 2025, additional country-specific tariffs will be imposed, which Trump believes will address unfair trade practices. "Jobs and factories will come roaring back into our country and you see it happening already," he said.
The new tariffs were introduced under the recently issued order titled TAD-760 Reciprocal Tariffs, which outlines measures aimed at rebalancing trade relationships between countries. The Trump administration argues that many foreign nations impose tariffs on American goods that are significantly higher than those the U.S. places on their imports.
Economists warn the baseline 10% tariff could increase costs on common goods like electronics and household items. The National Retail Federation estimates consumer prices could rise by 2-3% over the next six months.
Along with TAD-760, Trump declared a national emergency, citing persistent trade imbalances and the erosion of American manufacturing capacity. This emergency declaration allows the executive branch to impose trade measures without congressional approval.
Some countries will only face the base rate. These include:
Argentina
Australia
Brazil
Colombia
El Salvador
Saudi Arabia
Singapore
United Arab Emirates
United Kingdom
However, not all countries are subject to these “Liberation Day” tariffs: Canada and Mexico are exempt from the new tariffs under the United States-Mexico-Canada Agreement, sparing roughly 50% of Mexican and 38% of Canadian imports from the new tariffs.
Russia and North Korea have also been excluded from the reciprocal tariffs, with White House Press Secretary Karoline Leavitt stating that U.S. sanctions already “preclude any meaningful trade” between those countries.
This isn’t entirely true. Although trade between Russia and the U.S. has shrunk from $35 billion in 2021 to only $3.5 billion last year, the U.S. trades more with Russia than they do with smaller nations, such as Brunei and Kosovo.
Cuba and Belarus have also avoided new tariffs, as they’ve already experienced heavy sanctions that limit substantial trade with the United States. These countries face wide-ranging restrictions on financial transactions, exports, and diplomatic cooperation due to longstanding issues such as human rights abuses, authoritarian governance, and regional instability.
The U.S. government considers additional economic pressure on these nations to be redundant or strategically unnecessary under current policy frameworks.
Trump imposed an additional 34% levy on goods from China on top of a previous 20% tariff, as well as a 20% tariff on the EU, a 24% tariff on Japan, and a 25% tariff on South Korea.
In retaliation, China announced a 34% tariff on all goods imported from the United States, effective April 10, 2025. The Chinese Ministry of Finance stated, "The U.S. practice is inconsistent with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice."
In addition, China put export controls on seven different types of rare earth minerals, placed 11 American companies on its “unreliable entities list,” and added export restrictions on 16 more American companies.
As global markets brace for the full impact of these measures, both allies and adversaries alike have swiftly reacted, with several countries threatening retaliatory tariffs or formal complaints through the World Trade Organization.
Stating the U.S. actions "violate WTO norms and risk global economic instability”, the European Union announced its own counter-tariff package targeting U.S. agricultural products and vehicles.
The coming weeks are expected to test the resilience of global trade alliances and the effectiveness of Trump's aggressive strategy. As the world watches for the effect, the true cost—economic and diplomatic—of the Liberation Day tariffs remains to be seen.