President of the United States, Donald Trump, announced the signing of an executive order to impose an avalanche of reciprocal tariffs on major trading partners on April 2nd, during the long-awaited event that he dubbed "Liberation Day."

Trump began by saying that, for decades, the nation has been robbed and exploited by both nearby and distant countries. In response, he said he would sign an executive order to impose reciprocal tariffs.

The president announced he is imposing a minimum baseline tariff of 10% on all U.S. trading partners and held up a chart listing the "worst offenders" - dozens of specific countries facing additional reciprocal tariffs.

The list includes a 34% tariff on China, 39% on the European Union, 46% on Vietnam, 32% on Taiwan, 24% on Japan, 26% on India, 31% on Switzerland, 10% on the United Kingdom, 30% on South Africa, 37% Bangladesh, among others, from April 5. 

Trump said the tariff calculations were only half of what the United States has been paying, saying he could have gone higher. He called his approach "kind reciprocal." 

The United States president also announced that 25% tariffs would be imposed on automobiles and automobile parts. 

President Trump said the nation is standing for the country's great farmers and ranchers and that the levies will ultimately lead to America's golden age. 

According to the international news network CNN, these tariffs have four main objectives: curbing the flow of fentanyl and illegal immigration into the United States, ensuring fair competition with trade partners, increasing public revenue, and boosting domestic manufacturing.

The tariffs most are keeping an eye out for are those that impact agricultural trade from major partners such as Mexico and Canada, who are key suppliers to the U.S. market.

One of the most highly anticipated tariffs in the Latin American agricultural sector is the potential taxation on Mexican and Canadian goods, two key trade partners of the United States. The threat of a 25% tariff on products from these countries has been looming for months, leading to bilateral meetings and discussions of "reciprocal tariffs" if U.S. tariffs are implemented.

Mexico's President, Claudia Sheinbaum, has focused on resolving differences through dialogue. Along with the Prime Minister of Canada, Mark Carney, they have agreed on the importance of maintaining communication with the United States, integrating the three economies, and strengthening the Mexico-United States-Canada Agreement (USMCA).

The United States relies heavily on Mexico for the supply of tomatoes, avocados, peppers, and numerous fruits and vegetables. Additionally, Canada is a major exporter of beef, pork, and canola oil to the U.S. The potential 25% tariff could lead to price increases.

Although the U.S. is not at risk of food shortages, certain staple products in the American diet could soon experience significant price pressures. For example, the cost of popular items like avocado toast may rise due to tariffs on Mexican avocados. As a result, food prices in the U.S. may become more susceptible to seasonal fluctuations.

Any announcement - or lack thereof - by Trump has created volatility in international markets due to uncertainty over price increases for certain inputs, which will affect both the industries involved and end consumers.

On Tuesday, April 1, White House Press Secretary Karoline Leavitt stated that whatever Trump ultimately announces regarding tariffs will take effect "immediately."

Before Trump's "Liberation Day"

Canada

The two countries are key trade partners. In 2023, Canada imported just over $5 billion in fresh products from the U.S., accounting for nearly half of all fresh product imports.

Meanwhile, Canadian companies exported just over $4 billion in fresh products to the U.S., making up more than 95% of all Canadian fresh product exports.

Europe

Hours before Trump's announcements, European Commission President Ursula von der Leyen stated that the European Union is fully prepared to respond to Trump’s tariffs.

"It must be clear: Europe did not initiate this confrontation. We do not necessarily want to retaliate, but we have a strong plan to do so if necessary."

"The citizens of Europe must know: we will always promote and defend our interests and values, and we will always stand up for Europe," she declared from a French city, calling for "unity" in response to Trump’s actions.

For the European Union, tariffs affect aluminum and steel, with a 25% duty. In response, Brussels will reinstate tariffs that were imposed between 2018 and 2020 during Trump's first term, which impacted French wine, Spanish olive oil, and Italian cheese, among other products.

The full list of affected products and services will be disclosed once the tariffs take effect.

Asia

According to China’s state broadcaster CCTV, China, Japan, and South Korea will jointly respond to the imminent tariffs.

It was reported that the three countries held economic talks on Sunday, March 30, for the first time in five years, pledging to promote fair trade and strengthen economic ties among each other, just days before the United States announces drastic tariffs on all trade partners.