‘Liberation Day’ Tariffs Go Into Effect

President Donald Trump’s “reciprocal” tariffs against U.S. trading partners went into effect a minute after midnight Wednesday, raising import costs from China, the European Union, Japan, and many other trading partners.

The round of tariffs includes a punishing 104% tariff on China, one of America’s biggest trading partners and its biggest economic rival. The European Union was hit with a 20% tariff, Taiwan with a 32% tariff, Japan with a 24% tariff, South Korea with a 25% tariff, and Vietnam with a 46% tariff.

The tariffs follow a 10% tariff on most countries in the world, a 25% tariff on imported cars, and a 25% tariff on goods from Canada and Mexico that aren’t under the USMCA. These tariffs could close the book on the post-World War II era of free trade, turning back the clock to the protectionist policies of the 19th century.

Economists have warned that the import taxes will likely push up the cost of living, reignite high inflation, and send the U.S. economy into a nosedive. If they are not soon walked back, this could potentially cause the loss of millions of jobs.

The Trump administration indicated Tuesday that multiple countries were negotiating deals with the U.S., potentially leading to reduced tariffs. However, none had yet been struck when the deadline passed.

Trump has said the tariffs are meant to reverse the loss of manufacturing jobs in the U.S. over the past three decades, force other countries to lower their own trade barriers to U.S. companies, and raise revenue to run the government in place of income taxes.