Liberation Day: A look at Trump’s tariffs timeline and how they will impact US economy, consumers' pocket
Donald Trump’s Liberation Day is finally here, after months of warnings and concerns around his another round of tariffs announcement.
In the wake of what is expected to be the largest unilateral increase in tariffs since the Cuban embargo of the 1950s, some nations rushed to sign last-minute agreements, while others are looking for methods to revamp their supply chains, frequently by bringing themselves closer to the US’s competitors.
Trump’s last year presidential campaign focused heavily on trade and tariffs, which are central to his plans to boost the US economy.
Moreover, Trump administration made dramatic statements during rallies and speeches proposing blanket tariffs of up to 60% on US competitors like China, the recent announcements concentrated mostly on “reciprocal” tariffs.
Liberation Day: A quick look at Trump’s tariffs timeline
Trump announced tariffs on Canada and Mexico on February 1: Trump levied a 25% tariff on almost all Canadian and Mexican imports in a string of executive directives, taking effect on February 4. While 10 percent tariff was levied on Canadian energy and oil, Chinese imports faced same tariffs under the same set of orders.
Trump postponed tariffs on February 3 after retaliation threats: The Trump administration negotiated an extension of one month with the leaders of Canada and Mexico, just a day before the 25% tariff was scheduled to go into effect, following their threats of imposing high retaliatory tariffs on U.S. exports.
Tariffs between Canada and Mexico took effect on March 4: The US tariffs against Canada and Mexico went into effect one month after the tariffs were scheduled to start. In addition, the US doubled blanket tariffs on Chinese goods from 10% to 20%.
Trump again delayed some tariffs on March 6: Soon after the US-Canada-Mexico tariffs came into effect, the US postponed taxes on roughly half of the goods listed by the USMCA free trade agreement by another couple of weeks. The entire set of tariffs is now expected to take effect on April 2.
Trump announced April 2 as Liberation Day: It is anticipated that the majority of tariffs on all sectors and regions of the world, will go into effect from today.
Auto tariffs on April 3: On April 3, planned tariffs that target passenger vehicles and trucks from any country—estimated to be as high as 25%—will go into effect.
Tariffs on auto parts: An executive order that levied automobile tariffs states that a 25% auto components tariff will take effect prior to May 3.
Also Read: Trump declares Liberation Day tariffs will be ‘very kind and very nice’, but to whom?
Liberation Day: How Trump tariff will impact US economy and consumer pockets
Although it’s unknown which nations will be affected and to what extent, reports indicate that the Trump administration may impose tariffs of up to 25% on the biggest trading partners of the United States, including Japan, Taiwan, Vietnam, Germany, Ireland, and Italy.
Tariffs aim to encourage domestic production and consumption by levying taxes on imported goods. However, consumers, not foreign governments, usually bear the brunt of the cost surge. According to experts, many voters, who claimed to have supported Trump, are concerned that Trump’s broad tariffs on commodities from other nations may cause price increases and inflation.
Fruits, vegetables, cars, electronics, crude oil, sugar, meat toys, and more could become more expensive in the coming months due to Trump’s proposed broad tariffs on “all countries,” which will go into effect on April 2.
All automobiles, including American models, will probably cost between $4,000 and $15,000 each as a result of Trump’s auto tariffs.
Addressing the media on January 31, Trump said he intended to impose a duty on pharmaceuticals, but he refused to give more details on his plans.
Importing necessary pharmaceuticals from China costs the US more than $2 billion. In addition, Mexico, Canada, the United Kingdom, and India account for a sizable amount of U.S. pharmaceutical imports.
Americans wear a lot of clothing that is imported from other countries. Vietnam has almost overtaken China as the largest exporter to America and accounts for almost 17% of all US imports.
If Trump’s tariff plan is implemented globally, it may significantly affect the cost of clothing in Asian countries. According to Just Style, Steve Lamar, president of the American Apparel & Footwear Association, said tariffs may disrupt the appeal industry and affect the millions of jobs it supports, as per the UK Independent.
China’s third-largest exports to the United States due to lower manufacturing costs abroad, toys, games, and sporting goods.
“There is no manufacturing base for toys in the U.S. anymore,” the CEO of Basic Fun, the company that makes Fischer-Price and Care Bears, told The New York Post, despite the fact that the goal of tariffs is to encourage domestic manufacture.