The Decibel Making sense of Trump’s ‘Liberation Day’ tariffs
Apr 3, 2025
Mark Rendell, an economics reporter for the Globe, delves into Trump’s recent 'Liberation Day' tariffs that have stirred confusion worldwide. He explains how these new reciprocal tariffs are meant to combat unfair trade practices, while Canada and Mexico may escape some penalties under USMCA. The discussion highlights the escalating trade war's implications for countries like China and the UK, and the potential retaliatory actions that could further unravel international trade relations.
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Trump's Tariff Announcement
- President Trump announced new tariffs, calling it "Liberation Day".
- The announcement included a visual aid with countries and tariff rates.
Reciprocal Tariffs Explained
- Reciprocal tariffs mean matching other countries' tariffs on US goods.
- The calculation includes not just tariffs, but also market access and other regulations.
Canada's Exemption
- Canada and Mexico are exempt from the reciprocal tariffs under the USMCA trade deal.
- Goods compliant with the USMCA will continue to trade tariff-free.