U.S. President Donald Trump has confirmed that his upcoming tariff announcement will apply to many countries, not just a selected few. He plans to introduce a set of "reciprocal tariffs" to match the fees that other nations impose on U.S. goods. This move is expected to impact global trade significantly, with allies and rival economies preparing for possible consequences.

What are these new tariffs?

President Trump has named April 2, 2025, as "Liberation Day," when he will reveal details of the new tariffs. These measures will target countries with large trade imbalances with the U.S. He stated, "You'd start with all countries. Essentially all of the countries that we're talking about."

So far, his administration has already imposed tariffs on aluminium, steel, and autos. Additionally, all Chinese goods entering the U.S. have seen increased tariffs. In February, President Trump directed U.S. trade officials to analyse different countries and prepare a list of unfair trade practices. Last week, he hinted that some tariffs might be adjusted to lower rates than what other countries charge the U.S.

The initial tariffs began in early February when Mr. Trump announced up to 25% duties on goods from Canada and Mexico. He justified these tariffs by citing concerns about illegal immigration and drug smuggling, especially fentanyl. While the implementation was delayed to March, the administration later offered partial relief to support the auto industry. However, after April 2, it is unclear whether those exemptions will continue.

How will other countries respond?

China has been one of the hardest hit countries by U.S. tariffs. In response, China imposed 10% and 15% tariffs on U.S. agricultural goods like soybeans. The European Union (EU) has also introduced countermeasures to respond to U.S. steel and aluminium tariffs. The EU has threatened tariffs on $28 billion worth of U.S. products, such as Bourbon and motorcycles, but postponed the start date until mid-April for further discussions.

Meanwhile, Canada has retaliated by placing tariffs on U.S. goods worth about $60 billion ($42 billion), affecting steel, aluminium, and electronics. Mexico has not yet taken action but is expected to announce its response in early April.

Trump has also threatened to impose 200% tariffs on European wine and spirits, causing concern among both foreign producers and U.S. businesses.

More tariffs and investigations ahead

The U.S. government is not stopping at these tariffs. Mr. Trump has already ordered investigations into lumber and copper imports, which may result in additional duties. There is also an ongoing examination of China’s activities in the maritime and logistics sectors. The administration is considering charging up to $1.5 million in entrance fees for Chinese-built ships using U.S. ports, but this proposal faces opposition from businesses worried about higher costs and shipping delays.

Moreover, the Trump administration is reviewing several trade agreements. A report is expected on the "Phase One" trade deal between the U.S. and China, signed during his first presidency. Other trade policies under review include export control regulations to protect U.S. technology and the U.S.-Mexico-Canada Agreement.

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