The new tariff regime introduces a universal 10% base tariff on all imports, effective April 5. Additionally, foreign-made automobiles now face a 25% tariff, a measure that took effect at midnight. The pièce de résistance, however, is the implementation of "friendly reciprocal tariffs," which mirror half the rates imposed by each respective country, effective April 9. This has resulted in tariffs such as 34% on Chinese imports, 46% on Vietnamese goods, and 26% on products from India.
China, ever the gracious trade partner, responded with a 34% tariff on all U.S. imports, condemning the U.S. move as "unilateral bullying." The European Union, not to be outdone, approved retaliatory tariffs on $23 billion worth of U.S. goods, with phased implementation from April to December. Canada, feeling left out, imposed a 25% levy on U.S. auto imports not compliant with the USMCA.
The global markets, always appreciative of stability, reacted with characteristic calm. The S&P 500 and Nasdaq Composite have gracefully declined over 15% and nearly 21% year-to-date, respectively. Economists, those perennial optimists, warn of negative growth in the latter half of 2025 and a potential rise in unemployment. Meanwhile, central banks in India and New Zealand have preemptively cut interest rates, and emergency policy meetings are underway in several countries.
Treasury Secretary Scott Bessent reported that nearly 70 countries have reached out to initiate trade talks, perhaps to express their heartfelt gratitude. Leaders from Israel, Japan, and South Korea have also shown willingness to reduce trade barriers in response to the new U.S. policy. The administration remains open to negotiating reductions in tariffs through new trade deals, provided they align with the "America First" doctrine.