Day 73

2025 Tariff Shock: Sweeping Import Taxes Trigger Global Trade Crisis

On April 2, 2025 — which Trump called 'Liberation Day' — Trump signed executive orders imposing a 10% baseline tariff on all imports and 'reciprocal' tariffs of 11% to 50% on specific countries, including key allies. The tariffs were the most sweeping U.S. trade action since the Smoot-Hawley Tariff of 1930. China faced cumulative tariffs of 145%. Canada and Mexico faced 25% tariffs on most goods. Global financial markets experienced their largest multi-day declines since the 2008 financial crisis. The administration paused some tariffs 90 days after announcement under market pressure, while maintaining China tariffs.