Market Data 
President Donald Trump’s slate of reciprocal tariffs on over 180 countries took effect on Wednesday morning.
The tariffs, which start at a baseline rate of 10%, were first announced by Trump on April 2, or what he called “Liberation Day.” Trump said 185 countries would be hit with tariffs. The list included America’s rivals like China, as well as major allies in Europe and Asia.
“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump said in his announcement on Wednesday.
The baseline 10% rate went into effect on April 5. The higher tariff rates — which vary by country and constitute an additional percentage on top of the base rate — are in effect as of press time on April 9.
The European Union was hit with a 20% tariff, while India was slapped with a 26% tariff. China was initially given a 34% tariff on top of the 20% tariff that Trump imposed last month.
However, on Tuesday, the Trump administration said it would raise its tariffs on China by an additional 50%, bringing the total to 104%.
China’s Commerce Ministry said on Tuesday that Trump’s tariffs were “completely groundless” and a “typical unilateral bullying practice.” China announced a retaliatory tariff of 34% on all US imports on Friday.
“China will never accept this. If the US insists on its own way, China will fight to the end,” the commerce ministry said in its Tuesday statement.
Trump’s tariffs have roiled markets since it was announced last week. The S&P 500 is down by over 15% year to date, while the Nasdaq Composite fell by nearly 21% year to date.
The move has drawn criticism from business leaders and economists, who have said the tariffs will harm rather than help the US economy.
“This is probably the worst, most consequential, self-inflicted wound in US economic policy since the Second World War,” former Treasury Secretary Larry Summers told GZERO Media in an interview that aired on Tuesday.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” JPMorgan’s CEO Jamie Dimon wrote in his annual letter to shareholders on Monday.
Trump allies like Elon Musk have also broken with the administration’s position on tariffs.
The Tesla and SpaceX CEO said on Saturday that he wants to see a “zero-tariff situation” and a “free trade zone” between the US and Europe.
Mixed messaging from Trump officials
The Trump administration has sent mixed signals on whether the tariffs are meant to be permanent or part of a negotiation strategy.
On Monday, Trump’s top trade advisor, Peter Navarro, wrote in an op-ed for the Financial Times that Trump’s tariffs were necessary because the “international trade system is broken.”
“This is not a negotiation. For the US, it is a national emergency triggered by trade deficits caused by a rigged system,” Navarro wrote.
Navarro’s remarks run counter to what other Trump officials are saying.
On Tuesday, Asia markets experienced a brief rebound after countries such as Japan said they were kickstarting tariff negotiations with the US. Treasury Secretary Scott Bessent wrote in an X post on Monday that he and US Trade Representative Jamieson Greer would lead trade negotiations with Japan.
“Almost 70 countries have now approached us wanting to help rebalance global trade,” Bessent wrote on X on Monday.
Trump himself appears keen to begin negotiating. On Tuesday, the president wrote in a Truth Social post that he had spoken to South Korea’s acting President, Han Duck-soo, and that negotiations would soon begin.
“Their top TEAM is on a plane heading to the U.S., and things are looking good. We are likewise dealing with many other countries, all of whom want to make a deal with the United States,” Trump wrote.
“China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!” he added.
