Trump's tariff announcement: Key points at a glance

During yesterday’s press conference in the Rose Garden, President Donald Trump announced new sweeping tariffs on U.S. trade partners. A baseline tariff of 10% will be imposed on all U.S. trading partners, excluding Mexico and Canada (as of writing), along with higher country-specific tariffs on a list of over 50 specific countries.

This executive action declares the existing U.S. trade deficit a national emergency, viewing it as a threat to national security and the economy. The baseline 10% tariff is set to take effect on April 5 with country-specific rates starting on April 9. The stated aim of the tariffs is to address trade imbalances, inadequate intellectual property protections, other barriers to U.S. exports and the decline of the U.S. manufacturing sector. The effective tariff rate is expected to be at the high end, or even above, Wall Street estimates, potentially reaching the highest level seen since 1910.

Following the announcement, S&P 500 futures declined by as much as 3.5% during after-hours trading, with Nasdaq futures falling over 4%. For investors, we anticipate elevated market volatility. The announcement raises numerous questions regarding the potential for negotiation, the duration of the tariffs, possible product exclusions and the overall impact on the global economy. With this in mind, investors should focus on their long-term investment goals and remember that volatility, while uncomfortable, is a natural part of investing. Diversifying portfolios across asset classes and geographies, and staying invested remain an important consideration in this environment.

All market and economic data as of 04/02/25 are sourced from Bloomberg Finance L.P. and FactSet unless otherwise stated.

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