Here's who's getting hit hardest by Trump's 'Liberation Day' tariffs

• Trump announced a range of new tariffs on April 2, which he called "Liberation Day."

• The total effective tariff rate on Chinese goods now stands at 54%.

• Economists warned that uncertainty around the tariffs could strain consumers and businesses.

President Donald Trump's "Liberation Day" tariffs are here, and they could mean increased prices on a range of goods Americans rely on.

On Wednesday, Trump signed an executive order announcing a 10% baseline tariff on all countries, set to go into effect on April 5, as well as a reciprocal tariff scheme. The announcement sent global markets plummeting.

Countries will be charged "approximately half" of what they have been charging the US, Trump said. The tariffs will apply to nations with which the US has the highest trade deficit, and take effect on April 9.

The reciprocal tariff on goods from China is 34%. That's on top of the existing 20% tariff on Chinese goods, meaning the total effective tariff rate on Chinese goods now stands at 54%.

The announcement sets a 49% tariff for Cambodia, 46% for Vietnam, and 44% for Sri Lanka. The reciprocal goods tariff is 32% for Taiwan and 26% for India.

The European Union has been hit with a 20% tariff.

Trump also announced a 25% tariff on all car imports into the US.

He did not mention any new tariffs on Canada or Mexico during his remarks.

"April 2, 2025, will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again," Trump said.

He explained his motivation for the reciprocal tariffs: "They do it to us, and we do it to them. Very simple. Can't get any simpler than that."

Increased prices

In the weeks leading up to April 2, Trump signaled a range of tariffs he was planning to implement. They included a 25% tariff on goods from Canada and Mexico, a 25% tariff on all car and car part imports into the US, tariffs on agricultural goods, and reciprocal tariffs on all countries that have placed tariffs on US goods. A 25% charge on steel and aluminum imports is already in effect.

These tariffs are likely to increase prices on impacted goods. While some companies might choose to absorb some of the costs, consumers are set to shoulder most of the burden.

Markets and consumers have already been feeling financial strains due to the ongoing uncertainty with Trump's trade plans.

How countries and industries are reacting

The US is likely to suffer retaliatory tariffs following Trump's announcement.

The leaders of multiple countries, including Canada and China, vowed they would be taking countermeasures but did not immediately provide details on what that would look like.

In a video address on Thursday, Ursula von der Leyen, the president of the European Commission, said tariffs "make things work worse, not better," and that the EU was ready to take "firm countermeasures if necessary. Our immediate response to tariffs is unity and determination."

The United Auto Workers union previously lauded the president's plan to place a 25% tariff on all cars and car parts imported into the US, saying it would bring more jobs back into the US auto industry.

"These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country," UAW President Shawn Fain said in a statement.

Correction: April 3, 1:40 p.m. EST — An earlier version of this story misstated the reciprocal tariff rate on China. It is 34%, not 32%.

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