Trump unveils sweeping 10% tariff and 'reciprocal' tariffs on dozens of nations

President Trump has unveiled sweeping "reciprocal tariffs" on goods from the world over, plus a 10% baseline tariff on U.S. imports from all countries, as he seeks to reshape decades of U.S. trade policy despite warnings of higher costs for American businesses and consumers.

The president announced reciprocal tariffs aimed at penalizing countries for their trade barriers, which will apply to dozens of countries. Those taxes on imported goods are calculated on a country-by-country basis, and the levels Trump announced for some trading partners are substantial. He said he plans to impose 34% tariffs on China, 20% on the European Union and 24% on Japan, among an array of other trading partners. In addition, handouts distributed by the White House indicated a minimum 10% tariff to apply to goods from all countries.

Speaking in the Rose Garden on Wednesday at an event unveiling the new policy, Trump cast the new tariffs as payback to a global trade system he feels has been deeply unfair to the U.S.

"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," he said. "American steel workers, auto workers, farmers and skilled craftsmen — we have a lot of them here with us today — they really suffered gravely."

Trump had been teasing his reciprocal tariffs for weeks, branding April 2 as "Liberation Day." He has promised the new policy will bring in revenues to be put toward U.S. tax cuts and deficit reduction, and spur a renaissance in U.S. manufacturing.

But the pledge has glossed over the pain expected to be felt by U.S. consumers, who economists expect will end up paying higher prices. Tariffs are taxes paid by U.S. companies as they import goods. While the White House argues foreign countries will lower their prices to compensate, economists broadly agree that U.S. companies and consumers will bear the brunt of the tariffs.

The new tariffs, combined with Trump's other recent tariffs on goods like steel and aluminum, could also hurt some U.S. manufacturers by raising costs for imported materials. Mainstream economists are skeptical that the tariffs will bring in as much revenue as Trump has promised, with some cautioning they may increase the likelihood of a recession.

The uncertainty over the policy has rattled markets in recent weeks – the S&P 500 stock index just closed out its worst quarter since 2022. Wednesday's announcement came after U.S. markets closed, meaning stock market reaction won't come in the U.S. until Thursday morning.

Consumer confidence also recently hit a 12-year low, in part due to consumers expecting higher prices as a result of Trump's tariffs. Economists have found that tariffs Trump imposed during his first term were largely passed on to consumers.

The new taxes are an escalation of Trump's ongoing tariff-centric economic policy. Thus far this term, Trump has imposed tariffs on steel and aluminum, Chinese goods, and some goods from Mexico and Canada. He has threatened tariffs on an array of other countries and goods as well.

The tariff policy is widely expected to unleash a tit-for-tat trade war between the U.S. and its trading partners. Multiple nations have already signaled plans to retaliate. Canada – America's second largest trade partner, has said it is prepared to impose its own retaliatory tariffs. So has the European Union.

Trump has acknowledged that Americans could feel "some pain" from tariffs, but that any hit would be temporary. After Trump announced his plan to impose reciprocal tariffs in February, Yale Budget Lab estimated a hypothetical scheme could cost the average American consumer $2,700-$3,400 per year.

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