New 25 percent tariffs on all non-U.S.-made automobiles came into effect at midnight this morning. U.S. President Donald Trump announced the tariffs during a press conference yesterday on what he dubbed ‘Liberation Day’ for America. A further global 10 percent baseline tariff was also announced on all imports to the U.S.
In addition, Trump announced ‘friendly reciprocal tariffs,’ which would be equal to approximately half of the amount of what foreign countries impose on the U.S. In addition, the U.S. has signaled that there will be additional tariffs on so-called strategic sectors such as pharmaceuticals, lumber, and semiconductors.
Not expected to be subject to the additional tariffs are Canada-United States-Mexico Agreement (CUSMA)-compliant goods; however, non-CUSMA-compliant goods could face up to 25 percent tariffs, while the potash tariffs would remain at 10 percent.
