Trump announces new tariffs on what he calls “Liberation Day” amid fears of higher prices

Washington — President Trump on Wednesday announced the U.S. will impose a minimum baseline of 10% tariffs on goods imported from all foreign countries, as well as higher, “reciprocal” tariffs on nations that impose tariffs on U.S. exports, despite warnings from economists over increased prices.

The president, who signed an executive order to impose the tariffs, insisted the days of the U.S. being taken advantage of are “over.” The reciprocal tariffs, Mr. Trump said, will amount to roughly half the tariff rate those countries impose on U.S. exports, or less. Countries that will see tariffs higher than 10% include the European Union, China and Israel. 

Senior administration officials said the 10% worldwide tariffs take effect April 5 at 12:01 a.m., and the higher reciprocal tariffs go into effect on April 9 at 12:01 a.m.

“In short, chronic trade deficits are no longer merely an economic, they’re a national emergency that threatens our security and our very way of life,” the president said in a White House Rose Garden announcement. “And for these reasons, starting tomorrow, the United States will implement reciprocal tariffs on other nations.”  

“For nations that treat us badly, we will calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating, and because we are being very kind, we’re a kind people, very kind,” Mr. Trump said. “You’re not so kind when you’re ripped off… We will charge them approximately half of what they are and have been charging us.” 

As he spoke, the president proudly held up a chart showing the new tariff rates the U.S. will begin to impose on allies, foes and everyone in between, 

Countries that will see “discounted reciprocal rates,” according to a sheet handed out by the White House, include China at a rate of 34%, on top of the tariffs the U.S. already imposes on China; 20% on goods from the European Union; 32% on Taiwan; 25% on South Korea and 17% on Israel. 

Canada and Mexico are not subject to these tariffs for now, senior administration officials said, but tariffs the president has already imposed, citing fentanyl and migration issues, persist. 

Mr. Trump said “horrendous” trade imbalances have hurt the U.S. and put national security at risk, placing blame on previous U.S. presidents and administrations. 

“It’s our declaration of economic independence,” the president said in the White House Rose Garden. Mr. Trump labeled Wednesday “Liberation Day.”

The president lamented that the U.S. imports phones and other electronics, as well as pharmaceuticals, saying that if there’s a war, the U.S. would struggle. He said his moves Wednesday are also standing up for U.S. farmers and ranchers who have been “brutalized” by other countries, specifically blasting Canada. 

Mr. Trump said the Americans “subsidize” a lot of other countries, calling out the European Union, China, South Korea and Australia for their trade practices. 

“They’ve taken so much of our wealth away from us,” Mr. Trump said of other countries. 

The president said he expects complaints from “globalists,” “outsourcers,” “special interests,” and “fake news” in the days ahead, but insisted those groups have been wrong about trade before. 

“In the first term, they said tariffs would crash the economy,” Mr. Trump said. “Instead, we built the greatest economy in the history of the world.” 

In the audience for the president’s announcement were rank-and-file steelworkers and auto workers, House Speaker Mike Johnson, as well as most of Mr. Trump’s Cabinet, including Vice President JD Vance.  

What new tariffs did Trump announce today?

The president says his plan will place a minimum baseline of 10% tariffs on all countries, with reciprocal tariffs on many trading partners that have their own tariffs placed on the U.S. The 25% tariffs the president previously announced on foreign cars and foreign auto parts are set to go into effect at midnight.  

 A White House official said the reciprocal tariffs are additive, meaning they will be imposed in addition to any previous tariffs already in place, unless a specific good is exempt under Section 232 of the Tariffs Act, which carries a flat 25% rate on certain things like steel and aluminum.

Here are some of the tariff rates that Mr. Trump announced:

• China — 34% 
• European Union — 20%
• Taiwan — 32%
• South Korea — 25%
• India — 26%
• Israel — 17% 
• Nicaragua — 18%
• Norway — 15%
• Jordan — 20%

Countries that will see only the baseline 10% tariff rates include: Guatemala, Honduras, Argentina, El Salvador, Ecuador, Egypt, Saudi Arabia, Australia and the United Kingdom. 

Shawn Fain, president of United Auto Workers, told CBS News’ “Face the Nation with Margaret Brennan” Sunday that tariffs are one tool to get companies to bring jobs back to the U.S.

“Tariffs are a tool in the toolbox to get these companies to do the right thing, and- and the intent behind it is to bring jobs back here,” Fain said. “And, you know, invest in the American workers. The American working class people have been left behind for decades, and they’re sick of it.”

What are tariffs, exactly?

Tariffs are duties paid on goods imported into the U.S. The most common type of tariffs are ad valorem tariffs (Latin for “according to the value”), which represent a fixed percentage tax on the value of a product. The 25% auto tariffs are these types of tariffs.  

There are also “specific” tariffs, which are levied as a fixed charge per unit, and “tariff-rate quotas,” which are taxes triggered by reaching a specific import threshold.

What do financial experts say about tariffs?

Economists and taxpayer advocacy groups have their doubts, and are warning tariffs could upset economic growth and will almost surely contribute to higher prices for American consumers. Some automakers have already announced higher car prices, after the president announced tariffs on foreign cars and parts. 

More than a dozen leaders at think tanks and taxpayer advocacy groups, including at the National Taxpayers Union, the Taxpayers Protection Alliance, the Small Business & Entrepreneurship Council and the Competitive Enterprise Institute, on Tuesday sent a joint letter to congressional leaders and the commerce and treasury secretaries, urging them to consider how tariffs on steel, lumber, energy, pharmaceutical and medical supplies and cars and car parts will increase prices. 

“We encourage you to consider whether tariffs may, in many cases, undermine President Trump’s broader long-term economic goals by increasing the cost of goods subject to tariffs,” they wrote. “We are especially concerned about tariffs on inputs needed by U.S. manufacturers that make it harder to compete with finished goods made abroad and tariffs that increase the price of necessities like food and housing.”

Alex Jacquez, who worked on the Biden White House National Economic Council, said that although it’s hard to know the exact impact of Mr. Trump’s tariffs without knowing all the details, CEOs are telling investors and shareholders they will be hiking prices. 

“What the major retailers and companies who may be affected by tariffs are planning to do and they’re planning out in public here is pass these costs along to consumers as much as they possibly can,” Jacquez, now the chief of policy and advocacy at Groundwork Collaborative, said on a call with reporters Tuesday. 

Colin Grabow, associate director at the libertarian Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies, wrote in a USA Today op-ed that “tariffs are a costly and inefficient tax usually borne by the importing country’s customers.” 

“Americans may have voted for lower prices in November, but under the guise of tariff reciprocity, the Trump administration is set to deliver something very different,” Grabow wrote. 

A reporter on Tuesday asked Leavitt if the president is thinking about seniors on fixed income who are stressed about the recent swings in the stock market, swings partly attributed to the president’s tariff announcements. Stocks have struggled as Wall Street braces for the next round of tariffs. 

“Well certainly, they are legitimate concerns and the president takes those concerns very seriously,” Leavitt said. “And he’s addressing them every single day. And tomorrow’s announcement is to protect future generations of the senior citizens you mentioned. It’s for their kids and their grandkids, to ensure that there are jobs here in the United States of America for their children to live the American dream, just like they presumably did.”

And the president told NBC News he “couldn’t care less” if his tariffs lead to automakers raising their prices. 

“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” he told NBC. 

contributed to this report.