On April 2, 2025, President Donald Trump announced a bold new tariff policy targeting nearly all products imported from almost all countries. Dubbed "Economic Independence Day" or "Liberation Day" by Trump, the initiative includes: Baseline Tariff: A 10% tariff on imports from most trading partners, effective April 5, 2025. Higher Reciprocal Tariffs: Specific countries face steeper rates, such as: China: 34% European Union: 20% Vietnam: 46% Taiwan: 32% These rates, effective April 9, 2025, are labeled "half reciprocal," reflecting half the rate the U.S. believes these nations impose on American goods. Trump formalized the policy by signing an executive order, aiming to shrink the trade deficit, safeguard American jobs, and spur domestic manufacturing. However, the announcement triggered a sharp stock market decline, as investors worried about inflation, rising consumer costs, and potential trade conflicts. While Trump suggested possible flexibility—hinting at exemptions or delays for industries like autos, pharmaceuticals, and semiconductors—the specifics remain uncertain.