Some developing nations, such as Cambodia, Madagascar and Laos, face tariffs approaching 50 percent. A general 10 percent tariff will also apply to all imports unless otherwise specified.
The White House confirmed the first phase of the tariffs will take effect on 5 April, with higher country-specific rates activated on 9 April.
“We are finally putting America first,” Trump said. “Today is a day of liberation. Our industry is reborn.”
The EU, Canada, the UK and other major partners were not exempted. The announcement came amid Trump’s ongoing criticism of what he has called unfair global trade practices. The president framed the tariffs as reciprocal, claiming they mirror trade restrictions imposed on US exports by other nations.
“Start buying American,” Trump said, addressing foreign leaders.
Financial markets reacted quickly. The dollar declined against the euro and major US stock indices dropped. Gold prices surged to record levels.
The White House said the tariffs are intended to encourage domestic production and reduce reliance on foreign goods. The administration’s goal, according to communications director Karoline Leavitt, is to transform the United States into “an industrial superpower.”
The European Commission is preparing a response. Trade Commissioner Maroš Šefčovič is set to meet with EU ambassadors on Friday to discuss countermeasures. EU industry ministers will convene next week in Luxembourg to further assess options.
The Confederation of Finnish Industries described the tariffs as “a significant blow” to EU exports. Its director Timo Vuori said the Finnish export sector will be affected, though he noted that negotiations could still modify the final outcomes.
“These tariffs are clearly aimed at the largest US trading partners,” Vuori said. “The positive is that Trump left the door open to talks. That will be crucial.”
According to estimates from the Research Institute of the Finnish Economy (Etla), a 20 to 25 percent tariff could reduce EU economic growth by up to three percent.
In London, UK Prime Minister Keir Starmer told Parliament the government is preparing for all outcomes and warned that a trade war benefits no one.
The European Central Bank expressed concern. ECB President Christine Lagarde said the effects will depend on the scope and duration of the tariffs.
Markets are expecting further volatility. Chief strategist Valtteri Ahti of Evli Bank said the scale of the tariffs surprised investors.
“This was a shock. The numbers were far above expectations,” Ahti said. “We now wait to see how countries react.”
Trump said earlier that he was considering a flat 20 percent tariff for all countries. While Wednesday’s announcement falls short of that, several individual rates exceed the threshold. Cars face a separate 25 percent duty beginning Thursday.
The US had already imposed tariffs on Canadian and Mexican goods, steel, aluminium and some Chinese imports. Those remain in place and are unaffected by this latest order.
Speaking after the announcement, Treasury Secretary Scott Bessent warned against retaliation, stating that countries that escalate the dispute would face consequences.
Trump’s move comes as part of his broader “America First” economic agenda, which he claims is aimed at restoring domestic jobs and manufacturing. Critics say the policy risks triggering a global recession.
The EU is expected to issue its formal response by the end of April.
HT