US President Donald Trump has announced a universal "baseline" 10% tariff on imports into the US, on what he has dubbed "Liberation Day".
Describing 2 April, 2025 as "our declaration of America's economic independence", he said "reciprocal tariffs" would start at that baseline, although 60 countries would be hit with far higher rates of up to 50%.
The tariffs will take effect in the next few days.
Trump said that from midnight on 3 April, the US would start imposing 25% tariffs on all foreign-made cars. It is unclear if this was additional to the universal tariffs.
Trump argues the measures - which make foreign goods more expensive - will help US manufacturers and protect jobs. However, prices could go up for consumers.
What tariffs has Trump just announced?
Trump said that the US had been taken advantage of by "cheaters" and "pillaged" by foreigners and announced a 10% "baseline" tariff on all imports coming into the US.
However, nations including Cambodia, Vietnam, Malaysia and Bangladesh will be hit much harder, with tariffs reaching 50% in some cases.
UK goods will be hit by a 10% tariff, while those from the 27-member EU bloc by 20%.
The baseline 10% tariff will kick in on 5 April 12:01EST, while higher rates starting from 12:01 EST on 9 April.
Trump has previously announced a 25% tariff on all foreign-made cars coming into the US, which takes effect at midnight EST (04:00 GMT) 3 April.
Last month, he had unveiled a 25% tariff on all steel and aluminium imports.
The US president had also doubled to 20% a tariff on Chinese goods, slapped 25% on goods from Mexico and Canada, and a 10% tariff on Canadian energy imports.
What are tariffs and how do they work?
Tariffs are taxes charged on goods imported from other countries.
Typically, tariffs are a percentage of a product's value. For example, a 25% tariff on a $10 (£7.76) product would mean an additional $2.50 charge.
Companies that bring the foreign goods into the country have to pay the tax to the government.
Firms can choose to pass on some or all of the cost to customers.
The universal "reciprocal tariffs" announced by Trump are meant to target rival countries that are already placing import charges on American products - although the US president argues his levies are smaller than those imposed on the US.
Why is Trump using tariffs?
Tariffs are a central part of Trump's economic vision. He says "tariff" is his favourite word.
He argues the taxes will encourage US consumers to buy more American-made goods, boosting the country's economy and increasing the amount of tax raised.
Trump wants to reduce the gap between the value of goods the US imports and those it exports to other countries.
For example, the US had a trade deficit of $213bn (£165bn) with the European Union (EU) in 2024, something Trump has called "an atrocity".
The US president also said tariffs were intended to force China, Mexico and Canada - the countries first targeted - to do more to stop migrants and drugs reaching the US.
Will prices go up for US consumers?
Economists expect tariffs to increase prices for US consumers across many imported goods, as firms pass on some or all of their increased costs.
The products affected could include everything from beer, whisky and tequila to maple syrup, fuel and avocados.
Firms may also decide to import fewer foreign goods, which could in turn make those which are available more expensive.
Among Trump's targets are overseas car firms. The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade and roughly half of overall sales.
The new import taxes of 25% on cars and car parts will take effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts are due to kick in later, possibly in May.
Car prices were already expected to rise as a result of tariffs on imports from Canada and Mexico.
Component parts typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.
The cost of a car made using parts from Mexico and Canada alone could rise by $4,000-$10,000 depending on the vehicle, according to analysts at the Anderson Economic Group.
The tariffs Trump announced during his first term as president raised the average price of steel and aluminium in the US by 2.4% and 1.6% respectively, according to the US International Trade Commission.
US tariffs on imported washing machines between 2018 and 2023 increased the price of laundry equipment by 34%, according to official statistics.
Prices fell once the tariffs expired.
How will Trump's tariffs affect the UK?
PA Media UK Prime Minister Sir Keir Starmer leans forward as he talks to US President Donald Trump during a meeting at the White House in February 2025.PA Media
The UK exported around £58bn of goods to the US in 2024.
The economy will be affected by the car and steel tariffs which have already been introduced - and is expected to be hit again by the latest measures.
Speaking at Prime Minister's Questions ahead of the Trump announcement, PM Sir Keir Starmer said he was "preparing for all eventualities", and ruling nothing out.
The UK government has so far not announced any taxes on US imports.
Trade Secretary Jonathan Reynolds has previously insisted that ongoing trade talks with the Trump administration mean the UK is in the "best possible position of any country" to have tariffs weakened or reversed.
Economists have warned any major tariffs could knock the UK's economy off course and make it harder for the government to hit its self-imposed borrowing rules.
How have other countries responded to Trump's tariffs?
A number of other countries have introduced their own tariffs on goods imported from the US.
These will make US products more expensive, and are bolstering fears of a global trade war which could create problems for economies worldwide.
China has introduced a 10-15% tax on some US agricultural goods. It has also targeted US aviation, defence and tech firms.
EU tariffs targeting US goods worth €26bn (£22bn) will start on 1 April and be fully in place on 13 April. They will cover items ranging "from boats to bourbon to motorbikes", as well as steel and aluminium products.
The head of the European Commission, Ursula von der Leyen, has promised a "robust and calibrated response" to any further tariff announcements.
Canada has imposed 25% tariffs on US steel, aluminium and a range of other goods. Further counter tariffs may be introduced.
Mexico has delayed introducing its own retaliatory tariffs while negotiations continue.
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Meloni says Trump tariffs are 'wrong' as world leaders react
1 hour ago Sofia Ferreira Santos BBC News
Canada's Mark Carney (L), Italy's Giorgia Meloni (C) and Australia's Anthony Albanese (R) have been reacting to Trump's tariffs on goods coming into the United States
Italian Prime Minister Giorgia Meloni has said US tariffs on European Union imports are "wrong", after US President Donald Trump announced he would begin charging a 20% rate on EU goods.
Meloni is one of the many world leaders reacting to Trump's "liberation day" announcements, which include a universal 10% baseline tariff on all imports into the US from 5 April.
Around 60 countries - including the EU - will be hit with steeper tariffs from 9 April. Some of the highest rates will be levied on smaller countries, such as Lesotho, which has been hit with a 50% levy.
Trump said the measures would "make America rich again", adding that he had been "very kind" in his decisions.
Meloni, a Trump ally, said the EU tariffs would "not suit either party" - referring to the EU and the US - but that she would work towards a deal with the US to "prevent a trade war".
Her Spanish counterpart Pedro Sánchez said Spain would protect its companies and workers and "continue to be committed to an open world."
Irish trade minister Simon Harris said he was ready to negotiate with the US, calling it the "best way forward", while Taoiseach Micheál Martin said Trump's decision was "deeply regrettable" and benefitted "no-one".
Outside of the EU, Australian Prime Minister Anthony Albanese said Americans would end up paying the biggest price for what he called "unjustified tariffs", but said his government would not impose reciprocal measures.
"We will not join a race to the bottom that leads to higher prices and slower growth", he added.
Latin America's biggest economy, Brazil, approved a law in congress on Wednesday - the Economic Reciprocity Law - to counter the 10% tariff imposed by Trump. There was no immediate reaction from the president, but last week Luiz Inácio Lula da Silva said his country "cannot stand still" in face of the tariffs.
Shortly after Trump's announcement, US Treasury Secretary Scott Bessent warned countries not to "retaliate" and "sit back, take it in".
"Because if you retaliate, there will be escalation", he told Fox News.
Noticeably, the US's two biggest trade partners, Canada and Mexico, were not mentioned in Wednesday's announcements.
The White House said it would deal with both countries according to previous executive orders, which imposed 25% tariffs on the two nations as part of efforts to address fentanyl and border issues.
Regardless, Canada will still be impacted by the tariffs, Prime Minister Mark Carney said. Measures such as the 25% tariff on automobiles starting at midnight on Thursday would "directly affect millions of Canadians", he added.
He vowed to "fight these tariffs with counter measures", adding that the US levies would "fundamentally change the global trading system."
Trump's tariffs on China, EU and more, at a glance
2 hours ago Kayla Epstein BBC News
Donald Trump announced a sweeping new set of reciprocal tariffs on Wednesday, arguing that they would allow the United States to succeed.
Trump's tariffs, which he imposed via executive order, are expected to send economic shockwaves around the world. The White House released a list of roughly 100 countries and the tariff rates that the US would impose in kind.
Here are the basic elements of the plan.
10% baseline tariff
In a background call before Trump's speech, a senior White House official told reporters that the president would impose "baseline tariffs" on all countries.
That rate is set at 10% and will go into effect on 5 April.
Some countries will only face the base rate. These include:
United Kingdom
Singapore
Brazil
Australia
New Zealand
Turkey
Colombia
Argentina
El Salvador
United Arab Emirates
Saudi Arabia
Custom tariffs for 'worst offenders'
White House officials also said that they would impose specific reciprocal tariffs on roughly 60 "worst offenders", to go into effect on 9 April.
These countries charge higher tariffs on US goods, impose "non-tariff" barriers to US trade or have otherwise acted in ways the government feels undermine American economic goals.
The key trading partners subject to these customised tariff rates include:
European Union: 20%
China: 54%
Vietnam: 46%
Thailand: 36%
Japan: 24%
Cambodia: 49%
South Africa: 30%
Taiwan: 32%
No additional tariffs on Canada and Mexico
Canada and Mexico are not mentioned in these new tariff announcements.
The White House said they would deal with both countries using a framework set out in previous executive orders, which imposed tariffs on Canada and Mexico as part of the administration's efforts to address fentanyl and border issues.
He previously set those tariffs at 25%, before announcing some exemptions and delays.
Trump to charge tariffs of up to 50% on 'worst offenders' globally
President Donald Trump has unveiled plans for new import taxes on all goods entering the US, in the biggest upheaval of the international trade order since the aftermath of World War Two.
His plan sets a baseline tariff on all imports of at least 10%, consistent with a proposal he made on the campaign last year.
Items from about 60 trade partners that the White House described as the "worst offenders", including the European Union and China, face higher rates - payback for what Trump said unfair trade policies.
Analysts said the trade war escalation was likely to lead to higher prices for Americans and slower growth in the US, while some countries around the world could be plunged into recession.
But in Wednesday's announcement at the White House, Trump said the measures were necessary because countries were taking advantage of the US by imposing high tariffs and other trade barriers.
Declaring a national emergency, the Republican president said the US had for more than five decades been "looted, pillaged, raped and plundered by nations near and far, both friend and foe alike".
"It's our declaration of economic independence," Trump said in the Rose Garden against a backdrop of US flags.
The White House said the US would start charging the 10% tariffs on 5 April, with the higher duties for certain nations starting on 9 April.
"Today we are standing up for the American worker and we are finally putting America first," Trump said, calling it "one of the most important days, in my opinion, in American history".
His decision to move forward stunned many analysts.
"He just dropped a nuclear bomb on the global trading system," Ken Rogoff, former chief economist at the International Monetary Fund, told the BBC.
Canada and Mexico not affected
Tariffs are taxes on imports. On the campaign trail last year, Trump said he would use them to raise revenue for the government and boost manufacturing, promising a new age of US prosperity.
He spent weeks previewing Wednesday's announcement, which followed other orders raising tariffs on imports from China, foreign cars, steel and aluminium and 25% on some goods from Mexico and Canada.
For now, the White House said the latest changes would not change anything for Mexico and Canada, two of America's closest trading partners.
But other allies will face new tariffs, including 10% for the UK and 20% for the European Union, said Trump.
Tariffs on goods from China will jump a further 34%, adding to an existing 20% levy, while the tariff rate will rise to 24% for goods from Japan, and 26% from India.
Some of the highest duties will hit exports from countries that have seen a rush of investment in recent years, as firms shifted supply chains away from China following tariffs in Trump's first term.
Goods from Vietnam and Cambodia will be hit with 46% and 49% respectively.
Other high levies will fall on much smaller nations, with goods from the southern African country of Lesotho facing 50%.
The duties will affect trillions of dollars in trade, likely setting the stage for higher prices in the US on clothing, European wine, bicycles, toys and thousands of other items.
Olu Sonola, head of US economic research at the Fitch Ratings agency, estimated that the measures would bring the US tariff rate to what was in place in 1910.
"This is a game-changer, not only for the US economy but for the global economy," he said.
"Many countries will likely end up in a recession."
The US stock market was closed for trading by the time that Trump made his announcement, which he branded "Liberation Day".
But shares in the Asia-Pacific region opened lower on Thursday morning.
Japan's benchmark stock index, the Nikkei 225, was down by 4% in early trading. Australia's ASX 200 was around 2% lower.
Wedbush Securities analyst Dan Ives described the tariffs as "worse than the worst case" that investors had anticipated.
But he said he believed there would be negotiations and exemptions.
Trump has described his measures as "reciprocal" - intending them as a retaliation for other countries' policies that he says fuel high trade imbalances.
These include high tariffs, as well as Value Added Tax (VAT) or regulations that bar foods with traces of certain chemicals.
Treasury Secretary Scott Bessent warned other countries against hitting back with their own tariffs.
"My advice to every country right now is, do not retaliate," Bessent told Fox News.
"Sit back, take it in, let's see how it goes. Because if you retaliate, there will be escalation," he warned. "If you don't retaliate, this is the high watermark."
The new tariffs were announced at the same time that Trump reinstated plans to end tax-free treatment for small packages from China as of May, a move that would hurt Amazon rivals such as Shein and Temu.
He confirmed that a 25% tax on imports of all foreign-made cars, which he announced last week, would begin from midnight.
And he repeated his intention to hit specific items that were exempt from Wednesday's action, such as copper and pharmaceuticals, with separate tariffs.
Trump has dismissed concerns about how his tariffs will affect the US economy.
But the move is likely to prove a political test for the administration, which was elected in part on promises to tame prices.
Opinion surveys indicate that many Americans do not believe tariffs will help the economy, as Trump argues.
About 48% of Republicans told a recent Marquette Law School Poll that they shared those concerns.
Gustavo Flores-Macias, professor of government and public policy at Cornell University, said: "The promise of generating manufacturing jobs in the US is not going to be immediate - if it materialises.
"The increase in prices is likely to materialise very quickly."
He said Trump's announcement meant that the international trade system, which the US helped to create after World War Two, was "unravelling".
Post time 3-4-2025 11:08 AMFrom the mobile phone|Show all posts
Mengikut pakar,Malaysia tidaklah impact besar sangat sebab sektor semiconductor dikecualikan daripada tariff ini,hingga diberitahu kelak. Sektor ini penyumbang terbesar export Malaysia ke US. Mungkin industri tempatan yang terjejas adalah medical device, rubber products,perabot dan machinery. Rakyat US kena bayar lebih untuk produk ini,atau supplier akan source product sama dari negara lain yang lebih rendah tariff. Worst case scenario adalah kilang yang terlibat tutup dan rakyat hilang pekerjaan. Malaysia tak export kereta ke US seperti Korea Selatan dan Jepun.
Malaysia adalah pengeluar condom terbesar dunia. Bayangkan harga condom di US makin mahal akibat tariff ke atas Malaysia.
Post time 3-4-2025 11:16 AMFrom the mobile phone|Show all posts
ultra78 replied at 3-4-2025 11:08 AM
Mengikut pakar,Malaysia tidaklah impact besar sangat sebab sektor semiconductor dikecualikan daripad ...
Maka nanti banyak lah golongan biforti US sana membiak bagai tikus sebab abortion masih illegal di banyak states. Semoga USA akan mundur 20-30 tahun akan datang.
Post time 3-4-2025 11:28 AMFrom the mobile phone|Show all posts
ultra78 replied at 3-4-2025 11:08 AM
Mengikut pakar,Malaysia tidaklah impact besar sangat sebab sektor semiconductor dikecualikan daripad ...
Jangan risau..demand ke atas condom tidak akan berkurangan selagi aktiviti free sex tidak diharamkan di Amerika..itu adalah antara hiburan utama mereka..
Post time 3-4-2025 11:29 AMFrom the mobile phone|Show all posts
Edited by Dwdrum at 2-4-2025 07:31 PM
ilacantik replied at 2-4-2025 07:16 PM
Maka nanti banyak lah golongan biforti US sana membiak bagai tikus sebab abortion masih illegal di ...
Ko pasti?... Sepatut nya ko risau malaysia akan terima unemployment 16% china untuk toungsters dari 1+ billion merempat di malaysia... Check in never check out... Bagi forecast ko.... Risau malaysian sendiri di us MNC....
Presiden Amerika Syarikat, Donald Trump, telah menandatangani perintah eksekutif untuk mengenakan tarif timbal balik, yang bertujuan meningkatkan pembuatan domestik dan mengurangkan ketidakseimbangan perdagangan. Tarif ini akan mencerminkan kadar cukai yang dikenakan oleh negara lain terhadap eksport AS.
Namun, pelaksanaan tarif ini boleh menjadi rumit kerana kadar cukai berbeza mengikut kategori produk dan negara. Sebaliknya, pentadbiran Trump memilih untuk mengenakan kadar tarif berdasarkan negara dengan mengambil kira ketidakseimbangan perdagangan secara keseluruhan.
Trump juga telah menyenaraikan "Dirty 15", iaitu negara yang paling terjejas oleh tarif ini, termasuk China, EU, Vietnam, Mexico, Jerman, dan Malaysia. Pakar ekonomi memberi amaran bahawa langkah ini boleh mengganggu perdagangan global dan meningkatkan kos kepada pengguna serta perniagaan di AS.
Answering your questions about President Trump’s reciprocal tariffs
By CHRISTOPHER RUGABER and PAUL WISEMAN
Updated 6:42 AM GMT+8, April 3, 2025
WASHINGTON (AP) — After weeks of anticipation and speculation, President Donald Trump followed through on his reciprocal tariff threats by declaring on Wednesday a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States.
In announcing the reciprocal tariffs, Trump was fulfilling a key campaign promise by raising U.S. taxes on foreign goods to narrow the gap with the tariffs the White House says other countries unfairly impose on U.S. products.
“Reciprocal means ‘they do it to us and we do it to them,’” the president said from the White House Rose Garden on Wednesday.
Trump’s higher rates would hit foreign entities that sell more goods to the United States than they buy. But economists don’t share Trump’s enthusiasm for tariffs since they’re a tax on importers that usually get passed on to consumers. It’s possible, however, that the reciprocal tariffs could bring other countries to the table and get them to lower their own import taxes.
The Associated Press asked for your questions about reciprocal tariffs. Here are a few of them, along with our answers:
Do U.S.-collected tariffs go into the General Revenue Fund? Can Trump withdraw money from that fund without oversight?
Tariffs are taxes on imports, collected when foreign goods cross the U.S. border by the Customs and Border Protection agency. The money — about $80 billion last year — goes to the U.S. Treasury to help pay the federal government’s expenses. Congress has authority to say how the money will be spent.
Trump — largely supported by Republican lawmakers who control the U.S. Senate and House of Representatives — wants to use increased tariff revenue to finance tax cuts that analysts say would disproportionately benefit the wealthy. Specifically, they want to extend tax cuts passed in Trump’s first term and largely set to expire at the end of 2025. The Tax Foundation, a nonpartisan think tank in Washington, has found that extending Trump’s tax cuts would reduce federal revenue by $4.5 trillion from 2025 to 2034.
Trump wants higher tariffs to help offset the lower tax collections. Another think tank, the Tax Policy Center, has said that extending the 2017 tax cuts would deliver continued tax relief to Americans at all income levels, “but higher-income households would receive a larger benefit.’’
How soon will prices rise as a result of the tariff policy?
It depends on how businesses both in the United States and overseas respond, but consumers could see overall prices rising within a month or two of tariffs being imposed. For some products, such as produce from Mexico, prices could rise much more quickly after the tariffs take effect.
Some U.S. retailers and other importers may eat part of the cost of the tariff, and overseas exporters may reduce their prices to offset the extra duties. But for many businesses, the tariffs Trump announced Wednesday — such as 20% on imports from Europe — will be too large to swallow on their own.
Companies may also use the tariffs as an excuse to raise prices. When Trump slapped duties on washing machines in 2018, studies later showed that retailers raised prices on both washers and dryers, even though there were no new duties on dryers.
A key question in the coming months is whether something similar will happen again. Economists worry that consumers, having just lived through the biggest inflationary spike in four decades, are more accustomed to rising prices than they were before the pandemic.
Yet there are also signs that Americans, put off by the rise in the cost of living, are less willing to accept price increases and will simply cut back on their purchases. That could discourage businesses from raising prices by much.
What is the limit of the executive branch’s power to implement tariffs? Does Congress not play any role?
The U.S. Constitution grants the power to set tariffs to Congress. But over the years, Congress has delegated those powers to the president through several different laws. Those laws specify the circumstances under which the White House can impose tariffs, which are typically limited to cases where imports threaten national security or are severely harming a specific industry.
In the past, presidents generally imposed tariffs only after carrying out public hearings to determine if certain imports met those criteria. Trump followed those steps when imposing tariffs in his first term.
In his second term, however, Trump has sought to use emergency powers set out in a 1977 law to impose tariffs in a more ad hoc fashion. Trump has said, for example, that fentanyl flowing in from Canada and Mexico constitute a national emergency and has used that pretext to impose 25% duties on goods from both countries.
Congress can seek to cancel an emergency that a president declares, and Sen. Tim Kaine, a Democrat from Virginia, has proposed to do just that regarding Canada. That legislation could pass the Senate but would likely die in the House. Other bills in Congress that would also limit the president’s authority to set tariffs face tough odds for passage as well.
Post time 3-4-2025 12:17 PMFrom the mobile phone|Show all posts
FOTHER-MUCKER replied at 3-4-2025 11:37 AM
Terkejut, Malaysia lebih rendah dari Taiwan dan Vietnam!
Kalau rujuk kepada image yang dikongsikan oleh forumer dalam thread ni, kadar tariff yang ditetapkan oleh US adalah berdasarkan kadar tariff yang dikenakan oleh negara tersebut untuk produk US.
Kalau negara tu kenakan tariff yang tinggi untuk produk US, US akan kenakan tariff yang tinggi juga untuk produk dari negara tersebut.
Taiwan kenakan tariff sebanyak 64% untuk US products. Jadi US kenakan 32% untuk Taiwan products.
Vietnam pula kenakan tariff sebanyak 90% untuk US products. Jadi US kenakan 46% untuk Vietnam products.
In general, kita boleh rumuskan yang US kenakan 50% tariff daripada tariff yang dikenakan oleh negara tersebut terhadap US products.
Contohnya, Malaysia kenakan tariff sebanyak 47% untuk US products. US pula kenakan tariff setengah daripada peratusan ini. Jadi US kenakan tariff sebanyak 24% untuk Malaysian products.
This is a fair move. Negara tu kenakan tariff untuk US products. US kenakan juga tariff untuk product dari negara tu.
Sungguh mengherankan .. MalayDEsh negara Superpower No. 1 Dunia yang "MAHA KUAT dan MAHA BESAR" masih juga dikenakan "TARIF BEA MASUK" yang "SANGAT TINGGI" ...Bukankah US akan bunuh diri jika Trump tahu dan paham bahwa US X akan "SURVIVE" disebabkan US saat kini dan selamanya sangat membutuhkan dan tergantung ekonominya kepada MalayDesh .. Ironiknya ...Sebaliknya tanpa US pun MalayDesh akan tetap menjadi negara "MAJU" No. 1 dan Terkaya di dunia dan alam semesta ini ..
Post time 3-4-2025 09:48 AM
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