WASHINGTON (MaceNews) – Amid much pessimism about severe economic domestic consequences, President Trump Wednesday imposed massive tariffs on several dozen countries including China and the European Union and a blanket 10% levy on all the rest.
The Rose Garden announcement shook stock futures into large negatives while interest rates maintained lows last hit in October. The U.S. 10-year yield was at 4.13%.
One CNBC commentator said the new tariffs were the “worst of the worst case scenarios,” with an additional 34% levy on China goods on top of the already imposed 20%. The EU nations get 20%, Japan 24%. The already-announced 25% tariff on all imported cars and parts goes into effect at midnight while the latest so-called reciprocal tariffs hit April 5 and April 9.
A minimum 10% baseline reciprocal tariff will be imposed on all imports from anywhere if not covered by the higher tariff rates announced Wednesday such as is the case for the UK and Scotland. Otherwise, in what President Trump said was a “kind” gesture, the reciprocal tariffs are being set at only half the rates that would truly be symmetrically recriprocal.
For Canada and Mexico, no change, as explained in a White House fact sheet: This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.
Exempt from any of the reciprocal tariffs are those categories to be subject to “sectoral” tariffs, such as copper, pharmaceuticals, semiconductors, lumber, energy and “other certain minerals that are not available in the United States.”
Any retaliation answering the day’s reciprocal tariffs will be answered with increased USA tariffs. But if other countries take significant steps to lower their tariffs then the USA tariffs can be decreased.
Other than China, Japan and EU tariffs, those countries described as “worst offenders” get hit with levy rates up to 50%. For example, India gets a 26% rate, Vietnam faces a 50% tariff rate, Cambodia 49 %.
The jarring realignment of global trade arrangements – the most severe in many, many decades – is on a tight schedule that will force customs agents, importers, suppliers and logistics specialists to scramble in figuring out what to do next. President Trump, who has yet to concede that American importing firms, not foreign governments actually pay the tariffs, spoke mostly in sweeping generalities about how the United States has suffered from trade abuse despite the negotiated and otherwise long-accepted trade arrangements built through the decades.
“We’re going to be an entirely different country,” Trump said. “It’s going to be fantastic for the workers.” Trump’s sweeping vision for the future means, he said, “There will never have been a transformation that’s already happening in the United States of America.. It’s an incredible thing to watch.”
But critics say that even if disruptive new tariffs eventually pull in new jobs for Americans, that transformation will take years to accomplish while meanwhile prices of an overwhelmingly large portion of purchased goods will go up. For all automobiles, those entirely manufactured across the border or those produced domestically but with tariffed engines, transmissions and many other components, the increased costs could be several thousand dollars per vehicle.
For President Trump, the changes have made him the center of attention around much of the world. As the tariffs prompt bilateral negotiations in the months ahead, the focus will remain on the White House while the next shoes – retaliatory tariffs, drop. Now come the price adjustments for hundreds of categories of foods and manufactured products as well as the supply constraints that will erupt for many popular imports, from alcoholic beverages to shoes, the “de-tox” period as described by Treasury Secretary Scott Bessent who says the storied American Dream no longer means cheap items from countries like China and Bangladesh.