President Trump is poised to announce extensive reciprocal tariffs on all U.S. trade partners, an event he has dubbed “Liberation Day.” This marks a significant escalation in the ongoing trade conflict, which also includes plans to impose a 25% tariff on all foreign-manufactured vehicles this week.
The market is eager to learn the extent of these tariffs. Trump has sent mixed messages, stating over the weekend that he intends to initiate this reciprocal approach with “all countries.” Meanwhile, his advisors have prepared a proposal for a 20% tariff on most imports, although Treasury Secretary Scott Bessent has indicated that elevated tariff rates will act as a “cap” for countries to negotiate down, according to reports.
Further details will be revealed at 4 p.m. ET on Wednesday, when Trump will hold an event in the Rose Garden to announce the reciprocal tariffs.
Here is a summary of other tariff-related developments:
Steel and aluminum: A 25% U.S. tariff on steel and aluminum imports from all nations took effect on Wednesday, Mar. 12.
European Union: In response to these metal tariffs, the EU has implemented counter-tariffs on $28 billion worth of U.S. goods starting in April. However, the EU has postponed the enforcement of some tariffs, including a 50% duty on American whiskey, until mid-April, which led Trump to threaten a 200% tariff on European spirits.
Canada and Mexico: Trump’s 25% tariffs on its North American neighbors were enacted on Tuesday, March 4. Just two days later, Trump announced a temporary suspension of tariffs on goods and services compliant with the United States-Mexico-Canada Agreement (USMCA) until April 2. In retaliation, Canada imposed new duties on approximately $20 billion of U.S. goods in response to the steel and aluminum tariffs.
China: President Trump has implemented additional blanket tariffs of approximately 20% on top of the existing 10% tariffs that were established during his first term. In retaliation, China has introduced tariffs of up to 15% on American agricultural products, including chicken and pork, effective Monday, March 10.
Venezuela: President Trump announced that the United States will introduce a “secondary tariff” on Venezuela, set to take effect on April 2. This measure will impose a 25% tariff on any country that purchases oil or gas from Venezuela when engaging in trade with the United States.