On April 2, 2025, President Trump announced a universal 10% tariff on all imports, with much steeper rates for 60 specific countries. Here’s the breakdown for some key nations:
- China: 54% total
- Vietnam: 46%
- South Africa: 30%
- Japan: 24%
Trump framed this as reclaiming U.S. economic independence — hence the name “Liberation Day” — but the immediate reaction was anything but celebratory.
📉 Market Fallout
Wall Street tumbled:
- Dow Jones: ↓ 5.5%
- S&P 500: ↓ 6%
- Nasdaq: Entered bear market territory (20% off highs)
This reaction signals that investors are worried about:
- Higher prices for imported goods (inflation spike)
- Retaliation from trade partners
- Slowing business activity and consumer spending
- A potential recession if this escalates into a full-blown trade war
🧨 Backlash & Political Response
Barack Obama, speaking at Hamilton College, didn’t hold back:
“Imagine if I had done any of this?”
He warned that Trump’s economic moves wouldn’t help average Americans and condemned the broader posture toward law, academia, and dissent.
Chuck Schumer backed Obama’s concerns, pointing out that the business community is “deeply unsettled” by the volatility and unpredictability.
🥊 Global Blowback – Especially from China
China fired back with:
- 34% retaliatory tariffs
- Strong language, labeling the U.S. approach “unilateral bullying”
This could snowball if more countries follow suit — and with tensions high, it puts global supply chains and diplomatic relationships under strain.