New modelling reveals full impact of Trump’s ‘Liberation Day’ tariffs – with the US hit hardest

We now have a clearer picture of Donald Trump’s ‘Liberation Day’ tariffs and how they will affect other trading nations, including the United States itself.

- NIVEN WINCHESTER

The US administration claims these tariffs will improve what it views as unfair and non-reciprocal trade practices. Trump said this would forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed.

The “reciprocal” tariffs are designed to impose charges on other countries equivalent to half the costs they supposedly inflict on US exporters through tariff, currency manipulation and non-tariff barriers levied on US goods.

Each nation received a tariff number that will apply to most goods. Notable sectors exempt include steel, aluminum and motor vehicles, which are already subject to new tariffs.

The minimum baseline tariff for each country is 10%. But many countries received higher numbers, including Vietnam (46%), Thailand (36%), China (34%), Indonesia (32%), Taiwan (32%) and Switzerland (31%).

The tariff number for China is in addition to an existing 20% tariff, so the total tariff applied to Chinese imports is 54%. Countries assigned 10% tariffs include Australia, New Zealand and the United Kingdom.

Canada and Mexico are exempt from the reciprocal tariffs, for now, but goods from those nations are subject to a 25% tariff under a separate executive order.