Trump Tariffs in Full Force on "Liberation Day"

The President of the United States, Donald Trump, has released a wave of tariffs in his so-called "Liberation Day."

Donald Trump in his "Liberation Day" address on April 2nd.

The president has touted for months that he would implement a universal tariff plan. In his 2024 presidential campaign, he promised high tariff increases and that these tariffs would usher in a new era of domestic job creation, a booming economy, and the revival of manufacturing. Although he wished to keep to his promises early in into his administration, he did not actually implement a massive wave of tariffs on day one; rather, he consulted with his Secretary of Commerce, Howard Lutnick, to set a strict deadline for the implementation of all tariffs while the interim period would be used to negotiate rates. This date was yesterday, April 2nd.

Many investors have anticipated what these tariffs might look like. Although most tariffs were left to mere prediction, some specific tariffs were announced very early on: a 25% flat tariff on most goods coming in to the country from Canada and Mexico, an additional 10% on the already existing tariff rate on China, and a 25% "reciprocal tariff" on foreign steel and aluminum. The president has expressed willingness for some tariff exemptions, ranging from on oil to automobiles, but generally he wants a flat, universal tariff rate on all of the nation's importers.

On April 2nd, with the tariff deadline having been reached, the president made a massive policy change in the form of a large wave of tariffs. In his so-called "Liberation Day," the president has released a number of tariffs on all sorts of countries, large and small. The president has specifically targeted trading partners that have levied tariffs of their own on American products.

A list of some of the new reciprocal tariffs.

For instance, Madagascar, which has levied a 93% tariff on American goods (according to Trump), was targeted by a 47% tariff from the United States.

Stocks on Thursday reacted very poorly to Trump's agenda. The S&P 500 dipped 4.9%, and the Nasdaq sank by 6%. As of now, this day has marked the worst dip in general stock price since the 2020 pandemic.