WASHINGTON — President Trump urged Americans to chill out Wednesday as his enormous “reciprocal” tariffs took effect — including a 104% rate on China and 20% duty on the European Union.
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Trump wrote on social media.
“THIS IS A GREAT TIME TO BUY!!!” he added two minutes later, referring to the significant stock market selloff since he announced his “Liberation Day” levies April 2.
Stocks were mixed Wednesday morning after the S&P 500 and Nasdaq lost more than 12% of their value and the Dow Jones Industrial Average dropped more than 10% in the four trading days since the announcement.
Trump’s new tariffs include a 10% global baseline on most countries, with much higher rates on partners with which the US has trade deficits, including important allies.
Trump has signaled an openness to brokering trade deals to roll back tariffs — with Israeli Prime Minister Benjamin Netanyahu, who faces a 17% rate, visiting the White House Monday to pledge to eliminate his country’s trade surplus with the US and end all tariffs and non-tariff barriers.
The leaders of Japan, which faces a 24% tariff, and South Korea, which faces a 25% rate, have spoken with Trump and made similar vows to break down barriers to US goods — after Trump railed against their protectionist policies on American vehicles and agriculture.
Treasury Secretary Scott Bessent said Wednesday morning that about 70 countries have reached out to start trade talks — and that China is a standout in retaliating with high new tariffs of its own.
Trump, who has pined for tariffs in public remarks for four decades, has yet to terminate any of the new “reciprocal” tariffs, which do not impact USMCA-compliant goods from Canada and Mexico.
Computer chips, copper, lumber and pharmaceuticals were exempt from the new tariffs, though Trump has publicly committed to slapping levies on each of those products in a bid to return manufacturing to the US.
Trump also implemented a 25% tariff last week on foreign-made cars — which make up about half of the US market — and car parts, and previously slapped a stiff 25% tariff on steel and aluminum without exceptions, as well as a 20% tariff on China over fentanyl smuggling.
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