Trump declares sweeping 10% tariffs on imports from all countries

Editor's Note: This page is a summary of tariffs news for Wednesday, April 2. For the latest news, view our story for Thursday, April 3.

President Donald Trump on Wednesday declared sweeping tariffs of 10% on imports from all countries amid warnings from around the world that retaliation would follow, fueling tensions in a global trade war.

The much-anticipated announcement fulfilled the president's vow to hit back against countries he says have treated the U.S. unfairly.

Trump has long threatened reciprocal tariffs against countries around the world, but the president on Wednesday announced a different plan: The U.S. will charge dozens of nations half of their current tariff rate and other fees on American imports.

Among the most prominent countries hit by the reciprocal tariffs are China at 34%, Japan at 24%, the European Union at 20%, India at 26%, Vietnam at 46% and Taiwan at 32%. 

"Reciprocal,'' Trump said. "That means they do it to us and we do it to them.’’

Trump's universal tariffs on will go into effect Saturday at 12:01 a.m. and his reciprocal tariffs will hit on April 9 on new imports of foreign-made goods.

Trump says tariffs will force other countries to lower their own rates on U.S. goods and services, creating a more balanced economic playing field for U.S. exports and a strong incentive for companies to manufacture goods such as cars inside the U.S. to avoid paying the tax. However, some analysts warn that the costs of tariffs will be passed along to American consumers.

Even before the announcement, nations pledged to fight back. Canada said it was preparing countermeasures and China, Japan and South Korea were working on a unified retaliation. The EU said it would "calibrate our response."

The announcement came the same day Trump was rebuked by the Senate, where four Republicans crossed party lines to pass a resolution 51-48 to end the emergency declaration enabling tariffs against Canada. The resolution has virtually no chance to be approved in the GOP-controlled House and, even if it did, would have to be signed by Trump to become policy.

The tariffs are the latest in a series of levies Trump has announced since taking office in January. They include 25% tariffs on imported steel and aluminum, on imported automobile and automobile parts and on goods from Mexico and Canada. All those levies have fueled vehement objections from the targeted countries and industries.

Four Republicans cross Trump in vote to stop Canada tariffs

The resolution to end the emergency declaration enabling Trump’s tariffs against Canada, put forward by Sen. Tim Kaine, D-Va., was intended to get Republicans on the record regarding the policy.

Sen. Rand Paul, R-Ky., co-sponsored the measure and was joined voting in favor Wednesday by fellow Republicans Mitch McConnell of Kentucky, Susan Collins of Maine and Lisa Murkowski of Alaska, drawing Trump's ire even before the vote.

Though highly unlikely to pass the House, the resolution is the first official marker of a handful of Republicans’ stance on the controversial tariffs, which have raised widespread concerns about significantly hiking the cost of goods.

Trump contends he imposed the tariffs on Canada to pressure its government into curtailing fentanyl traffic across the northern U.S. border. Canadian officials, mystified by Trump's targeting, have said fentanyl seizures by U.S. agents at the northern border made up less than 0.1% of total U.S. seizures of the drug from 2022 to 2024. 

Low-income households would feel tariff pain the most

Some economists predict Americans will feel the pain from Trump’s tariffs, at least in the short term, and low-income Americans most of all.

If the administration rolls out tariffs as high as 20% on a broad range of goods and trading partners retaliate, the lowest-earning households with an average disposable income of about $43,000 would see that figure drop by as much as 5.5% − $2,365 − compared to 1.9% for the highest-earning households with disposable income above $500,000, according to a new analysis from Yale Budget Lab.

“A tariff is what we call a regressive tax because it pinches families at the bottom more than it does families at the top,” Ernie Tedeschi, director of economics at the Yale Budget Lab, told USA TODAY.

Lower-income households are more exposed to tariffs relative to their earnings because they spend a greater share of them, Tedeschi said. In dollar terms, higher-income households get hit harder: An average of $9,500 per household per year for those in the top tenth and $3,800 for those in the middle. The impact of tariffs would escalate over time for wealthier households as prices on assets such as stocks, bonds and real estate decline, the Yale Budget Lab analysis showed.

− Jessica Guynn, Bailey Schulz

Trump touts tariffs, others skeptical

Last week, Trump imposed a 25% tariff on imported passenger vehicles, light trucks and some auto parts. For imported cars protected by the United States-Mexico-Canada Agreement, only the foreign parts that make up the vehicle will be subject to the tariff. Before that, the Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China.

“We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth,” Trump said. He said the tariffs will "spur growth like you haven’t seen before.” 

Moody’s Analytics Chief Economist Mark Zandi was less bullish on tariffs, telling CNN "there’s no good case here ... It's just dark variations on a dark theme."

Financial markets sink in after-hours trading

After rising early Wednesday, U.S. stocks took a dive in after-hours trading following Trump's announcement.

The broad S&P was down 1.8%, the Dow Jones Industrial Average was 0.6% lower and the tech-heavy Nasdaq slid more than 2.4%. For the day's session, the S&P 500 added 37.90 points, 0.7%, to close at 5,670.97. The Dow gained 235.36 points to hit 42,225.32, up about 0.6%, and the Nasdaq tacked on 151.16 points or 0.9% to close at 17,601.05.

Investors had hoped the tariffs would be targeted, narrow and levied on a handful of countries. Over the weekend, however, Trump said his reciprocal tariffs would “start with all countries.” Reports also said he was pushing his advisers to be more aggressive.

The markets have experienced wild swings in recent weeks, but all three major stock indexes closed the first three months of the year lower. The S&P 500 and Nasdaq had their worst first-quarter performance since 2022.

"I’ve never seen anything like this. There’s so much uncertainty. We just don’t have answers," said Christine Short, vice president of research at analytics company Wall Street Horizon.

− Andrea Riquier and Medora Lee

Americans scramble for vehicles ahead of automobile tariffs

Some car dealerships are seeing an increase in business as car buyers try to get ahead of the 25% tariff on vehicles and parts produced outside the United States. Trump’s tariffs are expected to significantly increase the prices of new vehicles. 

Higher prices for new cars are also expected to raise used-car prices, though it’s unclear when consumers can expect price hikes with lots still lined with cars and trucks that were not subject to the tariffs. Data from car-shopping app CoPilot found supply on dealership lots has dropped “significantly” since March 23, especially among foreign-manufactured vehicles.

“I think you’re starting to see a little more panic and concern about the tariff,” said Art Wheaton, director of labor studies at Cornell University’s School of Industrial and Labor Relations and a transportation industries specialist.

− Bailey Schulz, Jessica Guynn

Trump still open to talks on tariffs

Treasury Secretary Scott Bessent, trying to stem any anti-tariff tide, said the global levies will be followed by the tax breaks Trump promised during his presidential campaign. If his plan passed Congress, tips, overtime and Social Security would not be taxed, and purchasing an American car would draw a tax deduction.

And White House press secretary Karoline Leavitt told reporters Tuesday that Trump could potentially negotiate lower tariffs with companies or countries if they change policies.

“Certainly the president is always up to take a phone call, always up for a good negotiation, but he is very much focused on fixing the wrongs of the past,” Leavitt said.

Little Slovakia among nations facing biggest hit from 'sledgehammer'

The German car industry is likely facing the biggest hit of any nation from the "tariff sledgehammer," economists at the Dutch financial firm ING report. Major manufacturers such as Volkswagen, BMW, Mercedes and Porsche are likely to be hit hard, ING said, adding that although many German production facilities operate in the U.S., they also build in Mexico and Canada.

But in terms of impact on the people, Slovakia, with a population of less than 6 million, could be hit the hardest.

"Slovakia, home to several car plants, is most exposed in terms of total U.S. export volume," economists Rico Luman and Inga Fechner wrote. "Notably, 73.2% of its total exports to the U.S. consist of cars and car parts."

Why is Trump calling today 'Liberation Day'

Trump has referred to April 2 as "Liberation Day" since he assumed the nation's highest office in January. The president has pledged to enact reciprocal tariffs on major trading partners as well as scores of other nations that contribute to the $1.2 trillion U.S. trade deficit.

Trump is trying to use tariffs as a way to force other countries to lower their own tariffs on U.S. goods and services, and to create a strong incentive for companies to manufacture goods such as cars inside the U.S. to avoid paying the tax. The administration has already announced 25% tariffs on imported steel and aluminum, on imported automobile and automobile parts and on goods from Mexico and Canada.

Trump said earlier this month that April 2 "is a liberation day for our country because we’re going to be getting back a lot of the wealth that we so foolishly gave up to other countries."

Tariffs 101: Who pays for them?

Tariffs are primarily levied on imports, typically to protect industries in the country levying them. Tariffs make imports more expensive, thus making local goods cheaper by comparison. Tariffs also can provide income that can be used to support local industries, fund public programs or cover government expenditures.

And they can serve as bargaining tools to win concessions from trading partners.

"While tariffs may seem to penalize foreign producers by making their goods or services less competitive, the reality is that U.S. consumers and businesses ultimately bear the cost," the Wilson Center scholars Diego Marroquín Bitar and Valeria Moy write in a "Tariffs 101" analysis.

E.J. Antoni, a public finance economist and senior fellow at the conservative Committee to Unleash Prosperity, disagrees, saying in his opinion piece for Fox News earlier this month that economic history tariffs are always at least partly paid for by exporters, not just customers."