#TariffsPause The "Liberation Day tariffs" announced by US President Donald Trump on April 2, 2025, aim to correct decades of unfair trading relationships. Here's a breakdown ¹:
- *Tariff Structure*: A baseline 10% tariff applies to imports from all countries except Canada and Mexico. Additional country-specific "reciprocal" tariffs target around 60 nations based on perceived unfair trade practices.
- *Implementation Dates*:
- *April 5, 2025*: 10% baseline tariff took effect.
- *April 9, 2025*: Higher country-specific tariffs commenced.
- *Exemptions*: Steel, aluminum, vehicles, vehicle parts, energy products, and certain minerals not available in the US are exempt.
- *Impact*: The tariffs apply to over 100 trading partners, with China facing an effective tariff rate of 54% after April 9.
*Reactions*:
- *Global Stock Market*: Experienced a significant crash following the announcement.
- *Business Organizations*: Concerns about potential inflationary effects, supply chain disruptions, and job losses.
- *Politicians*: Senate Democrats oppose the tariffs, while Republican leadership generally supports the policy.
*Notable Effects*:
- *Elimination of $800 De Minimis Threshold*: For duty-free imports from China, effective May 2, with plans to eliminate this threshold for other countries.
- *Increased Fees*: Minimum fee per shipment to rise to $50, impacting direct consumer purchases.