President Donald Trump on Wednesday revealed tariff plans to address what he said are unfair trade practices the U.S. experiences around the world. He called the declaration “Liberation Day.”
The unveiling began with a 10% tariff on all countries beginning April 5. An additional 50 to 60 countries will be subject to reciprocal tariffs above 10% beginning April 9.
The announcement revealed that products exported to Canada and Mexico, which are subject to the U.S.-Mexico-Canada Agreement (USMCA)—the free-trade deal signed by Trump in 2020—will be exempt from a 25% tariff imposed on non-USMCA products. RVs are covered by USMCA, meaning RVs shipped from the U.S. to Canada will continue to have duty-free status.
In addition, even when the International Emergency Economic Powers Act of 1977 (IEEPA) orders issued against Canada and Mexico by the president expire, RVs will continue to have duty-free status under USMCA.
Components and materials used to make RVs, OE products and aftermarket products will not be protected from tariffs unless they are imported from Canada and Mexico and the components or materials are covered under USMCA.
Among the tariffs levied on countries is a 34% reciprocal tariff on products imported from China. Beginning April 9, products imported from China will require a 54% tariff—the 34% in addition to the current 20% tariff that has been levied since February. The result is a tariff costing half the price of the product shipped to the U.S.
Other Asian countries, where low-cost manufacturing has grown in the past decade, were also subject to high tariffs. Vietnam imports will be subject to a 46% tariff. Indian imports will be levied a 26% tariff. Thailand imports will face a 36% tariff, Taiwan imports a 32% tariff, South Korean products a 25% tariff and Japanese imports a 24% tariff.
Products imported from the European Union (EU) will be subject to a 20% tariff.
Canada Prime Minister Mark Carney and European Commission President Ursula von der Leyen said Wednesday they would respond to the president’s tariffs with retaliatory tariffs. More details from Canada and the EU are expected to be released today.
Stock markets worldwide fell on the news. Asian markets closed 1% to 2.75% lower, European markets fell 1.5% to 3% and U.S. markets started the day 3.5% to 5% lower.
Stellantis, maker of Chrysler and Fiat autos, was the first automaker to react to the news. The automaker said it would suspend operations at its Windsor, Ontario, plant in Canada for two weeks and shutter its Toluca, Mexico, plant for a month as the company reassesses its future. CNBC said the actions would lead to thousands of layoffs at the assembly plants and an estimated 900 U.S.-represented employees.
