U.S. Imposes New 10% Tariff on 180 Countries

On April 2, 2025, President Trump announced a significant increase in tariffs, imposing a 10% tariff on imports from 180 countries alongside reciprocal tariffs based on bilateral trade imbalances. This marked the most extensive US tariff hike since the 1930 Smoot-Hawley Tariff Act, prompting analysis of its impact on exchange rates, which traditionally predict a strengthening of the home currency following such increases. Members of Congress engaged in trading activities during the market fallout from the tariff announcement, with both parties participating in opportunistic buying and selling of stocks. Additionally, on March 24, Trump authorized secondary tariffs targeting countries importing Venezuelan oil, which could lead to broader economic implications. Following the initial tariff announcement, the US government quietly exempted electronic products from reciprocal tariffs, a move described as unusual and potentially indicative of a reaction to unintended consequences of the broader tariff policy. Analysts expressed concern over the obscurity of this exemption announcement compared to the high-profile nature of the initial tariff increases.