Trump’s Expanding Tariff War: What You Need to Know About the New Import Taxes:

President Donald Trump has expanded his tariff campaign against nearly all major trading partners. On April 2, he announced his most extensive round of duties to date, branding them "reciprocal tariffs". These measures came into full effect on Wednesday at midnight, significantly escalating trade tensions.

What Tariffs Just Took Effect?

The newly implemented tariffs include:

A 10% baseline tax on most imports, effective since Saturday.

Increased tariffs, ranging from 20% to 50%, targeting dozens of countries.

Examples of steep rates:

China: 104% total tariffs (including previous measures)

Vietnam: 46%

Madagascar: 47%

Taiwan: 32%

South Korea: 25%

Japan: 24%

European Union: 20%

Lesotho: 50%

Trump claims these measures are in response to trade imbalances, asserting that many nations have "ripped off" the U.S. for decades.

How Will These Tariffs Affect Consumers?

Economists warn that consumers will bear the brunt of these increases through higher prices on everyday goods. The compounded effects of older tariffs and new duties could severely disrupt global supply chains and raise inflationary pressure.

China and Other Nations Respond with Retaliation

In response, China will enforce a 34% tariff on all U.S. imports starting Thursday, directly matching Trump’s earlier levy.

China’s Ministry of Commerce called Trump's escalation a "mistake on top of a mistake."

Officials signaled a firm stance, declaring they would "fight to the end."

Other countries, including Canada and EU members, are also evaluating their own countermeasures. However, some, like the European Union, have expressed openness to mutual tariff reductions under negotiation.

What Other Tariffs Are Already Active?

The U.S. has rolled out several other targeted tariffs:

25% auto import tax effective last Thursday (expanding to auto parts by May 3)

Steel and aluminum tariffs at 25%, revised in March 2025

25% Canadian auto tax, imposed in retaliation to U.S. levies

34% and 50% Chinese tariffs applied in stages, reaching a combined 104%

Note: Imports from Canada and Mexico under the USMCA remain duty-free, though other goods may still face tariffs up to 25%. The White House says these could be reduced to 12% upon fulfilling certain U.S. conditions on immigration and narcotics.

Future Tariffs: What’s Next?

Trump has hinted at more product-specific tariffs, including on:

Pharmaceuticals

Copper

Lumber

In a recent speech, he stated that a major tariff on pharmaceuticals would be announced soon, aimed at reviving domestic drug manufacturing.