Trump, Trade, and Tariffs: The Implications of “Liberation Day”

On April 3, one day after the introduction of reciprocal tariffs on all US trading partners on what President Trump is calling “Liberation Day,” we look at transatlantic trade. In calculating these tariffs, the Trump administration has said it will consider tariff discrepancies, balance of trade, and value-added tax rates. Germany and the European Union are among the primary targets – also given the 25% tariffs on car imports already announced on March 26. We assess the impact that Trump’s protectionism will have on global trade and how the EU should respond.