On April 2, President Donald Trump announced sweeping new tariffs during a speech in the White House Rose Garden, marking what he called “America’s Liberation Day.” Under a newly signed executive order, the U.S. will implement reciprocal tariffs on more than 180 countries and territories, and apply a 10% baseline tariff on all other imports, unless specifically exempted.
Trump framed the move as the beginning of a new “golden age” for American industry. He claimed that tariffs would bring back factories and jobs, open foreign markets, and ultimately lower prices through increased domestic production. “This is one of the most important days in American history,” he declared.
China was hit the hardest, with a total 54% tariff on Chinese imports, including a newly added 34% layer on top of the existing 20%. Auto imports will also face a 25% tariff starting at midnight, which could deeply impact global carmakers.
Canada and Mexico were spared—for now. Trump confirmed they would be exempt from the baseline tariff and from the new reciprocal tariffs, although he left open the door for future action. He specifically called out Australia for banning American beef while exporting $3 billion of its own to the U.S., and vowed retaliation starting immediately.
Some product categories were excluded from the new tariffs, including pharmaceuticals, semiconductors, copper, timber, energy resources, and minerals not found domestically. However, the administration warned that these categories could still face tariffs in future rounds.
Markets reacted swiftly. The S&P 500 ETF dropped 2.2%, and the Nasdaq 100 fell over 3% in after-hours trading. Meanwhile, gold and Treasury bonds surged, as investors sought safer assets amid rising uncertainty.
Political opposition followed. Democrats and several Republicans warned that higher tariffs could fuel inflation, raise costs for businesses and consumers, and slow economic growth. Rep. Josh Gottheimer (D-NJ) said, “This is not a liberation day; it’s a chaos day.”
In response, Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum issued a joint statement pledging stronger North American trade cooperation and defending their national economic interests.
Back in Washington, some senators are preparing to challenge the executive order. A bipartisan resolution to revoke Trump’s “national emergency” trade powers is expected to be voted on soon, signaling growing discomfort in Congress over unilateral tariff moves.
As the policy takes effect, analysts are watching closely to see if U.S. trade partners respond with retaliation. There is also growing concern that Trump could expand the tariffs to pharmaceuticals and other sensitive sectors.
With global markets already on edge and the U.S. economy showing signs of slowing, Trump’s latest trade offensive is expected to bring heightened volatility in the weeks to come.
