On April 9, 2025, the United States commenced enforcement of a comprehensive set of tariffs championed by President Donald Trump, targeting imports from approximately 90 countries. China has been subjected to the steepest tariff, with a cumulative rate of 104%, following its retaliation against prior U.S. duties.
The tariff structure includes a 10% baseline levy, with additional rates calculated based on trade deficits. Major U.S. allies, including the European Union, Japan, and South Korea, are also affected, with tariffs ranging from 17% to 25%. President Trump described these measures as a "Declaration of Economic Independence," aimed at reducing trade deficits and bolstering domestic production.
The implementation of these tariffs has led to significant market volatility. The S&P 500 experienced a 10.5% drop over two days, reflecting investor concerns about the potential for escalating trade wars and their impact on the global economy. Despite these economic apprehensions, President Trump has indicated openness to negotiating customized bilateral trade deals with countries seeking tariff relief but insists that the current tariffs will remain until trade imbalances and unfair practices are addressed.