Overview

• President Donald Trump announced a 10% baseline tariff on all imports and higher reciprocal tariffs on goods from 60 countries, including China and the European Union.
• China will face a 54% tariff, while the European Union will be taxed at 20%, with rates calculated at approximately half the tariffs these nations impose on U.S. exports.
• The tariffs, set to begin April 5 for the baseline rate and April 9 for higher rates, represent the most significant escalation in U.S. trade policy since the Smoot-Hawley Act of 1930.
• Global markets reacted sharply, with major indices dropping significantly, as trading partners like the EU and China prepared retaliatory measures.
• Economists warn the tariffs could raise consumer prices, disrupt supply chains, and increase the likelihood of a U.S. recession.