President Trump announced a baseline 10% tariff on U.S. imports, with steeper reciprocal levies on goods from Europe, Japan, China, and more than 50 other nations. The move ends the free-trade era that has defined global commerce for decades — raising concerns over consumer prices and economic impact.
"This is one of the most important days in my opinion, in American history," Trump said at a Rose Garden event. He emphasized that the tariffs would "supercharge our domestic industrial base" and help pry open foreign markets.
The administration clarified that 25% tariffs on vehicles, auto parts, and other imports like steel, aluminum, lumber, and pharmaceuticals would follow. Nations failing to meet USMCA trade obligations, like Canada and Mexico, will also face penalties.
Economists warn of potential stagflation, with rising prices, reduced growth, and business uncertainty. Consumer spending is expected to decline in the coming months.