Trump spared almost no nation on his "Liberation Day", hitting friends and foes alike and reserving some of the harshest tariffs for major trade partners, including the European Union and China.
Holding up a chart of the sweeping measures in the White House Rose Garden on Wednesday, Trump called it "our declaration of economic independence".
"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said, promising the move would restore a lost economic "Golden Age".
Nations around the world reacted swiftly, with China vowing "countermeasures" while France and Germany warned that the EU could hit US tech firms operating in Europe with a tax.
EU chief Ursula von der Leyen vowed Europe was "prepared to respond" to the tariffs, calling them a "major blow to the world economy".
But the 27-nation EU and other countries also showed willingness to negotiate, while Beijing said it was "maintaining communication" with Washington over trade issues.
The tariff announcements rattled stock markets while safe haven gold hit a new record high and the dollar slumped against other major currencies.
In Asia, Tokyo's Nikkei closed 2.8 percent lower after paring back bigger losses. Hanoi shares dropped more than seven percent after Vietnam was targeted with tariffs of 46 percent.
Europe's main stock markets were all in the red nearing midday trading, while US futures plummeted.
"Stocks are down around the world but these are not traditional panic moves, suggesting that there is still some expectation that deals can be cut to reduce some of the impact from tariffs," said Kathleen Brooks, research director at XTB trading platform.
Trump reserved some of the heaviest blows for what he called "nations that treat us badly."
That included an additional 34 percent on goods from China -- bringing the new added tariff rate there to 54 percent.
The figure for the European Union was 20 percent, and 24 percent on Japan, whose trade minister called the tariffs "extremely regrettable".
For the rest, Trump said he would impose a "baseline" tariff of 10 percent, including another key ally, Britain, which will come into effect on Saturday while the higher duties will kick in on April 9.
Separate tariffs of 25 percent on all foreign-made cars and light trucks also went into effect, with auto parts due to be hit by May 3.
- 'Catastrophe' for economy -
US Treasury Secretary Scott Bessent warned against countermeasures, saying on Fox News: "If you retaliate, there will be escalation."
Germany said "everything was on the table" as it joined France in saying the EU could tax US tech giants.
But German Chancellor Olaf Scholz, whose country is a major exporter of cars to the United States, said Europe was open to further talks to end the trade war. He called the US tariffs "fundamentally wrong".
Britain escaped relatively lightly after a diplomatic offensive, though Prime Minister Keir Starmer warned there would still be an "economic impact" from the 10 percent tariff on UK goods.
Australian Prime Minister Anthony Albanese said the tariffs are "not the act of a friend" but he said his country, which was also hit with the lower end of duties, would not retaliate.
Some of the worst-hit trading partners were in Asia, including 49 percent for Cambodia, 46 percent for Vietnam and 44 percent for military-ruled Myanmar, recently hit by a devastating earthquake.
Russia was not affected because it is already facing sanctions over the Ukraine war "which preclude any meaningful trade", a White House official said.
Certain goods like copper, pharmaceuticals, semiconductors, lumber and gold will not be subject to the tariffs.
Canada and Mexico are not affected by the new levies as Trump has already punished them for what he says is their failure to stymie drug trafficking and illegal immigration.
Canadian Prime Minister Mark Carney vowed to "fight" the existing levies.
- 'Make America wealthy again' -
Trump's announcement is the culmination of a long love affair with tariffs, which he has seen for decades as a cure-all for America's trade imbalances and economic ills.
A hand-picked audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump promised tariffs would "make America wealthy again".
Trump labelled Wednesday's tariffs "reciprocal" but many experts say his administration's estimates for levies placed on US imports by other countries are wildly exaggerated.
The US president had telegraphed the move for weeks, sparking fears of a recession at home as costs are passed on to domestic consumers.
French Prime Minister Francois Bayrou said the tariffs were a "catastrophe" for the world economy but also "for the United States and for American citizens".
Key details on Trump's market-shaking tariffs
Washington (AFP) April 3, 2025 -
After weeks of anticipation, US President Donald Trump unveiled sweeping new tariffs on trading partners Wednesday, calling it a "declaration of economic independence."
A fresh "baseline tariff" of 10 percent will apply to economies around the world, with steeper rates tailored to those that Washington deemed as bad actors.
What are the details of Trump's latest announcement?
- New tariffs -
A 10 percent "baseline tariff" kicks in at 12:01 am (0401 GMT) on April 5, while elevated rates for those the White House deemed "the worst offenders" take effect at 12:01 am (0401 GMT) on April 9.
The steeper additional tariffs impact major US trading partners, with the European Union facing a 20 percent rate and China a 34 percent figure.
For China, the number stacks on an added 20 percent levy Trump imposed earlier this year over its alleged role in the supply chain of illicit fentanyl, taking the new additional figure to 54 percent.
Other key partners include India with a 26 percent added rate, South Korea at 25 percent and Japan at 24 percent.
Trump said: "For nations that treat us badly, we will calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating."
The numbers, he said, are "approximately half of what they are and have been charging us."
- Exclusions -
Major US partners Canada and Mexico, however, are not subject to the new tariffs, White House officials said Wednesday.
Trump earlier imposed 25 percent tariffs on imports from both countries, with a lower rate on Canadian energy, and they will continue to face these duties.
But goods entering the world's biggest economy under the US-Mexico-Canada Agreement will continue to be exempted.
Should Canada and Mexico reach deals on the levies, however, they will still come up against Trump's latest baseline rate.
The White House also said that the latest country-based tariffs do not stack atop of sector-specific ones, like those already applied to imports of steel and aluminum.
Cuba, Belarus, North Korea, and Russia are not subject to Trump's new "reciprocal tariffs" as they are already facing sanctions which "preclude any meaningful trade," the White House said.
- Other tariffs -
On Thursday, new 25 percent tariffs on imported autos and certain parts will also kick in, bringing fresh challenges to the industry.
Trump earlier imposed 25 percent charges on steel and aluminum imports too, which will be expanded to impact canned beer and empty aluminum cans from Friday.
He has ordered probes into imports of copper and lumber as well, which could lead to further duties.
White House officials said Wednesday that the president is mulling similar moves on semiconductors, pharmaceuticals and possibly critical minerals.
Separately, a 25 percent levy on goods from countries importing Venezuelan oil can take place from April 2. Trump has threatened a similar "secondary tariff" on Russian oil.
- Small parcels -
On Wednesday, Trump ordered an end to a duty-free exemption for small parcels from China too, a move likely to severely disrupt the import of popular low-cost products.
The rule has faced heavy scrutiny as US officials pointed to the growth of Chinese-founded online retailers Shein and Temu as a factor behind a surge of shipments using the exemption.
Products imported under the "loophole" from China would be subject to a duty rate of either 30 percent of their value or $25 per item, increasing to $50 per item after June 1. The policy shift kicks in May 2, according to Trump's executive order.
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