Liberation (From Your Money) Day: Largest Tax Increase in History

April 2, 2025

On April 2, 2025, President Donald Trump announced a series of new tariffs under the “Liberation Day” initiative, targeting multiple countries and sectors. The key measures include:​

• Universal Tariff: A minimum 10% tariff on all U.S. imports. ​

• Country-Specific Tariff Examples:

  • China: 34% tariff on imports. Although challenging to calculate precisely, this appears to bring the total tax on imports from China to 114%. (Pre-Trump term tariff: 35%) + (Trump’s first increase: +20%) + (Tariff for using Venezuelan oil: +25%) + (New Reciprocal tariff: +34%) = 114%. It also remains unclear whether the tax on EVs will now rise to 214%.

  • Taiwan: 32% tariff on imports. Taiwan’s semiconductors are currently exempt; however, the U.S. administration is still evaluating the possibility of imposing tariffs of up to 100% on Taiwanese chips and related electronic devices.

  • European Union: 20% tariff on imports.

  • Japan: 24% tariff on imports. ​

  • Vietnam: 46% tariff on imports. ​

  • United Kingdom: 10% tariff on all goods. ​

  • Canada: 25% tariff on goods, with a 10% tariff specifically on energy products. ​

  • Mexico: 25% tariff on all products. ​

  • Australia: Tariffs imposed on beef exports to the U.S., citing Australia’s ban on American beef due to mad cow disease concerns.

There are at least 180 country-specific tariffs, in addition to sector-specific tariffs on industries such as automobiles, steel, and aluminum. Calculating the total sales tax impact requires complex assessments, factoring in tariffs on individual components, the country of origin for each part, and any additional sector-based levies. This layered tariff structure makes it difficult for businesses to accurately predict final costs and pricing for imported goods, especially since most products contain some imported materials. For example, 55% of fresh fruits and 32% of fresh vegetables consumed in the U.S. are imported, meaning the price of a salad could rise by 45%. In Pennsylvania, where there is a 6% sales tax, the new tariffs on a purchase from China could result in a total sales tax of 120%, including the state’s 6%. If it’s an electric vehicle (EV), the tax could reach 220%. Another estimate suggests that the cost of lumber for new construction could rise by $25,000. Most drywall comes from Mexico or China, so this would add a substantial tax burden. Metals, such as aluminum, steel, and copper, are also being taxed on a sector basis, adding to the overall cost. All of these factors are likely to double the cost of building a home.

Full List of Countries Hit With Reciprocal Tariffs

Reciprocal Tariffs

Trumpenomics: The Decline of the US