President Trump on Wednesday said the U.S. would impose a minimum baseline tariff of 10% on goods from all countries, along with reciprocal tariffs adding up to about half of the tariffs that each country places on U.S. products, although some countries will face steeper penalties.
For example, goods from China will be hit with a total 34% tariff—about half of the 67% tariff that Trump said China assesses on U.S. goods—which includes the baseline 10% tariff.
Other tariff rates, which include the 10% baseline tariff, that Trump announced at the “Liberation Day” event include:
20% on goods from the European Union (EU)
46% on goods from Vietnam
32% on goods from Taiwan
24% on goods from Japan
On Thursday, the S&P 500 sank 4.8%, more than in major markets across Asia and Europe, for its worst day since the pandemic crashed the economy in 2020. The Dow Jones Industrial Average dropped 1,679 points, or 3.9%, and the Nasdaq composite tumbled 6%, reported the Associated Press.
Tariffs Seen Raising Prices
The newly enacted tariffs, which were set to take effect immediately, follow the March 4 implementation of 25% tariffs on goods from Mexico and Canada and the previous announcement of 25% tariffs on foreign-made autos. Additional tariffs on Mexico and Canada were not mentioned in Wednesday’s announcement.
The tariffs are widely expected to increase costs for American consumers, according to observers. The Cato Institute, which promotes free trade, said evidence shows that the U.S. tariffs that the first Trump administration imposed in 2018 and 2019 were almost entirely passed on to U.S. consumers.
In making the latest announcement, Trump said the tariffs were meant to force foreign companies to build their products in the U.S., as well as to raise “trillions of dollars” in new revenues for the U.S.
“If you want your tariff to be zero, then build your plant in America,” he said.
Trump said the tariffs would be a boon to American ranchers and farmers, who would presumably face less competition from imported products, such as beef from Australia and rice from Asian countries, for example.
Associations Weigh In
“We welcome President Trump’s decision to exclude oil and natural gas from new tariffs, underscoring the complexity of integrated global energy markets and the importance of America's role as a net energy exporter. We will continue working with the Trump administration on trade policies that support American energy dominance,” said American Petroleum Institute (API) President and CEO Mike Sommers on the Trump administration’s decision to exclude oil and natural gas from new reciprocal tariffs in a statement on its website.
And the National Association of Convenience Stores (NACS) has advocated strongly that oil, refined products and renewable motor fuels should not be subject to the new tariffs, particularly products from Canada and Mexico. Those products, including energy products, which are qualified under the U.S.-Mexico-Canada trade agreement (USMCA), will continue to be imported without tariffs as they are today, NACS reported. Products that are not qualified under USMCA will continue to see 25% tariffs except that energy products from Canada not qualified under USMCA will continue to have a 10% tariff rate, according to the group.
“We appreciate the administration recognizing the unique role of petroleum products in trade and overall consumer prices as part of this announcement,” said Jon Taets, NACS director of government relations.
In a statement on its website, the National Grocers Association (NGA) said it encourages dialog with global trading partners to address trade concerns while minimizing disruptions for American consumers and independent grocers.
“NGA recognizes that tariffs can be powerful tools in trade and foreign policy,” said NGA President and CEO Greg Ferrara. “However, broad tariffs on all imported goods, including essential food products, packaging materials, and transportation components, risk exacerbating financial pressures for American families and independent grocers alike.”
A “balanced and strategic approach” will be needed to stabilize grocery prices, he said.
He also thanked President Trump and congressional leaders for their efforts to eliminate regulations and urged them to address credit card “swipe fees,” lax enforcement of antitrust laws, and the regulations that continue to impact supermarket operators.
A version of this story first appeared in CSP sister publication Supermarket News.
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