In a dramatic escalation of trade policy under President Trump, American customs officials started enforcing a newly imposed 10 percent tariff on imports from dozens of countries early Saturday morning. That came after a wild ride from the financial markets, which ended a week of their worst decline since 2020, a reaction that many analysts said was fed by the market convulsions sparked by President Trump’s divisive announcement of tariffs in an announcement that he called “Liberation Day”—which he made just days earlier on Wednesday.
The action has been widely regarded as something of a turning point in international trade. Kelly Ann Shaw, a veteran trade lawyer who served as a White House trade adviser during Trump’s first term, told Reuters the measure was “the single biggest trade action of our lifetime.” Shaw said that this is not only unprecedented in terms of scope but also represents a fundamental reorientation of U.S. trade relations.
While she expects that the details of the tariffs will change in upcoming negotiations, Shaw said this policy change amounted to “a pretty seismic and significant shift in the way that we trade with every country on earth.” They underscored the risk of permanent damage to the global economy, as the United States looks set to rename the game of trade, perhaps unleashing a history of retaliatory and negotiatory steps in worldwide relations.
A major shift occurred in trade relations on April 5, 2025, when the United States imposed a new 10 percent baseline tariff on imports from diverse countries. This first tariff impacted countries including Australia, Britain, Colombia, Argentina, Egypt, and Saudi Arabia.
In the wake of these developments, Elon Musk called for creating a U.S.-European free trade zone with no tariffs during an April 5 video conference at a League Party congress in Florence. He spoke to the virtues of free trade and increased freedom of movement for workers across the two regions. Musk is an adviser to President Trump, who said he has advised the president on such policies.
Now, the U.S. administration has announced plans to raise tariffs from 11% to 50% on 57 big trade partners. The European Union will face a 20% tariff and China 34%. These higher tariffs are expected to go into effect within the week.
China retaliates by stating on April 10 it would impose retaliatory measures against the U.S., including a 34% tariff on all U.S. goods. In addition, China announced it will enforce export restrictions on rare earth materials, key elements in numerous high-tech products.
These tariffs have resulted in a great deal of volatility in the world’s stock markets. The S&P 500 fell 9 percent for the week, its largest decline since the pandemic. Prices for oil and commodities also fell. Countries including Israel, Japan, Vietnam, and Taiwan have approached the U.S. administration for discussions to reduce the damage from these tariffs.
Across Europe, industries are preparing for the pain that the fresh tariffs could bring. France’s cognac industry, which is highly dependent on exports, was hit hard by a 20% tariff placed on U.S. imports by the U.S., and producers say dwindling sales may force them to reconsider production limits.
At home, U.S. lawmakers are increasingly worried about the tariffs’ blow to the economy. Senate takes aim at new tariffs with bipartisan bill. Summary: The new proposal would put new tariffs under the approval of Congress. The bill would force new tariffs to end in 60 days unless Congress approved them. However, the bill’s fate in the Republican-controlled Senate is uncertain even with support.
As the tweeters twaddle on, though, countries continue to react, businesses adapt to new trade realities (read: higher prices), and differences are negotiated in international corridors.
