Trump Announces Reciprocal Tariff Rates—54% For China, 20% On EU (Live Updates)

Topline

President Donald Trump announced Wednesday the U.S. would impose “reciprocal tariffs” on its trade partners based on calculations of the total cost of protective barriers and taxes they charge the U.S.—hitting China with an additional 34% tax on top of the 20% levy already imposed.

Key Facts

How Did The Stock Market Respond?

As of 4:45 p.m., S&P 500 futures had dropped nearly 2%, Nasdaq 100 futures were down 2.5% and Dow Jones Industrial Average futures fell nearly 1%.

When Will The Tariffs Take Effect?

Immediately, White House press secretary Karoline Leavitt told reporters Tuesday. A 25% tariff on imported car parts is scheduled for no later than May 3.

What Tariffs Has Trump Already Imposed?

A 25% tariff on all products from Canada and Mexico not subject to the U.S.-Mexico-Canada trade agreement, a 10% additional tariff on Chinese imports and a 25% tariff on all steel and aluminum imports.

Key Background

Few details were known about Trump’s plans headed into Wednesday’s announcement, which he was “perfecting” just hours earlier, Leavitt told reporters Tuesday. Trump, on the campaign trail, had repeatedly floated a 20% universal tariff on all goods imported to the U.S., though he’s suggested more recently he would tax goods from other countries according to the levies they impose on U.S. products and has also proposed sector-specific tariffs on industries such as pharmaceuticals, lumber and semiconductors. Bessent said last month the tariffs would target the “dirty 15,” or the 15% of countries that account for the bulk of trade with the U.S. Trump was also expected to announce when he’d trigger 25% tariffs on all imports from Canada and Mexico that he threatened in March, then delayed for a month for products subject to the U.S.-Mexico-Canada trade agreement, though he did not mention the paused tariffs in his Wednesday announcement.

Further Reading

Here’s What To Know About ‘Liberation Day’—From Announcement Time To What Trump May Target (Forbes)

Forbes Recession Tracker: Recession Odds Spike As Trump’s Tariff ‘Liberation Day’ Approaches (Forbes)