Economics

Summary

Trump announced a 10% baseline tariff on all U.S. imports and steep “reciprocal tariffs” targeting countries with high trade barriers, including 34% on China, 24% on Japan, and 20% on the EU.

The tariffs begin April 5 and April 9, respectively. Branded “Liberation Day” tariffs, the move claims to boost U.S. manufacturing and fund tax cuts but is expected to raise consumer prices.

Economists warn of recession risks and market instability.

Allies, including Canada and the EU, plan retaliatory tariffs, raising fears of a global trade war.