Discover the shocking details of Trump’s “Liberation Day” tariffs, their potential economic impact, and how markets and nations are reacting to this unprecedented trade move.

In a shocking move, President Trump announced sweeping new tariffs on imports from virtually every U.S. trading partner. Calling it “Liberation Day,” Trump imposed a blanket 10% tariff on all imports, with additional “reciprocal” tariffs on top of that for many countries.
With an overall weighted average of the new tariffs is 29%, the highest in over 100 years, some of the highest tariffs include:
- 46% on Vietnam
- 34% on China and Bangladesh
- 32% on Taiwan and Indonesia
- 31% on Switzerland
- 30% on South Africa
- 25% on South Korea
- 20% on the European Union
- More details can be found via the Presidential Daily Schedule Tracker

Trump claimed these tariffs matched what each country charges on U.S. exports. However, experts say the numbers don’t reflect actual tariff rates, but were likely calculated by dividing the U.S. trade deficit with each nation by the value of imports from that country.
Potential Economic Impact of These Tariffs
Imposing tariffs on so many allies at once is likely to have major repercussions for the U.S. and global economy. Since tariffs are essentially taxes on imported goods, they will raise costs for American consumers and businesses.
The high tariffs on Asian countries like China, Vietnam, Taiwan and Bangladesh could be especially disruptive, since many companies rely on supply chains and manufacturing in that region. Some Chinese firms had recently shifted production to Vietnam to avoid previous tariffs, only to now face even steeper duties.
The big question is whether Trump’s gambit will succeed in pressuring other nations to lower their trade barriers, or if it will simply lead to an endless cycle of tit-for-tat tariffs that leaves everyone worse off.
Responses from other nations have been mixed so far:
- Some countries like Argentina, Vietnam, Israel, Canada, and Mexico announced they will remove existing tariffs on U.S. goods if the U.S. also drops tariffs on their exports.
- The EU, UK, France, and Turkey are planning retaliatory tariffs against the U.S.
- China, Russia, and Brazil hinted at potential counter-measures.
- Japan and South Korea currently have no tariffs planned but are in talks with China about a joint response.
- Switzerland prefers to remain neutral, while Poland backs the EU’s position.
Reaction of the Markets to the Tarrifs
The stock market plunged to new lows following Trump’s announcement. S&P 500 futures, which had been up earlier in the day, nosedived as soon as the tariffs were unveiled, erasing $2 trillion in market value within minutes.
The S&P 500 is making lower highs and lower lows, indicating a bearish trend. Bitcoin has also been gradually grinding down, now trading around the key support levels it reached back in November.
For the crypto markets, the tariffs could be devastating. While Bitcoin could be a ‘hedge’ against economic uncertainty, when there is panic, risk assets tend to be sold off. Across the board, we see retraces and new lows for many coins.
Longer-term, much depends on how trade negotiations unfold in the coming months. If clarity is reached and tensions ease, the market could recover the losses. But a prolonged trade war will keep hurting markets in general.
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