In a historic announcement, President Donald Trump on Wednesday announced sweeping tariffs impacting virtually every U.S. trading partner, though he backed down from implementing full reciprocal tariffs on most countries.
Billed as “liberation day,” Trump announced during the live Rose Garden event at the White House that the administration is establishing a minimum baseline tariff of 10%.
Trump also confirmed that 25% tariffs on all foreign-made automobiles will begin at midnight tonight.
“This is one of the most important days, in my opinion, in American history,” Trump declared during a speech that lasted just under an hour. “It’s our declaration of economic independence.”
Trump also detailed his grievances toward trading partners that he described as eliminating American jobs and “cheating” the U.S. for decades. He maintained that because of the tariffs, U.S. “jobs and factories will come roaring back.”
But Trump stopped short of implementing his prior threats of tit-for-tat tariffs on key trading partners.
Reading from a large placard, Trump announced that the U.S. is placing 34% tariffs on China, 20% on the European Union, 46% on Vietnam, 32% on Taiwan, 24% on Japan, 26% on India and 25% on South Korea, among other countries.
While the full chart was not visible on TV broadcasts, a reporter for the Canadian Broadcasting Corp. confirmed that Canada and Mexico were not listed.
According to a report from CNBC, the 10% baseline tariff would only kick in for Canada and Mexico if the original 25% duties Trump placed on Canadian and Mexican imports are terminated or suspended.
The 10% baseline tariffs go into effect Saturday, while the higher reciprocal tariffs are set to begin on April 9, according to multiple news outlets briefed by senior administration officials.
Selma Hepp, chief economist for Cotality, said in a statement released just prior to the event that the tariffs may have a detrimental effect on the housing industry.
“The announced ‘liberation day’ tariffs could push home construction costs up by 4% to 6% over the next 12 months,” Hepp stated. “When factored in with the current inflation levels, there will be an estimated 10% increase in material prices, broadly averaging around a $17,000 to $22,000 increase in construction cost per home.”
Marisa Calderon, president and CEO of Prosperity Now, also expressed concern about the tariffs in a statement released before Trump’s speech.
“Tariffs may sound like a strategy to boost U.S. manufacturing, but for working families, they hit like another bill they can’t afford,” Calderon stated.
Following the speech, Trump formally signed the reciprocal tariffs order while seated at a desk next to the podium.
