Tariff Time

All imports into the US will face a 10% tariff, following a broad order by President Donald Trump yesterday, while many nations with existing levies on US goods will face additional reciprocal tariffs. The move marks one of the most significant shifts in US trade policies in generations and the realization of a core pillar of Trump’s 2024 campaign.

The order targeted a number of countries deemed to have unfair trade practices with the US. Notably, goods from China will face a new 34% tariff (the US imports about $460B annually), Japan will get hit with a 24% hike ($152B in annual imports), and the European Union will see a 20% hike ($605B in annual imports). Lesotho—which sends the US about $350M in goods—will see the highest tariff, at 50% (see full breakdown).

Mexico and Canada will face an already imposed 25% tax, excluding goods covered under existing free trade agreements, while all foreign autos will also see a 25% hike. Learn more about how tariffs work here.

Stocks tumbled in extended trading on the news, see updates here.