5 takeaways from President Trump's massive tariffs that are even steeper than expected

President Donald Trumpimposed sweeping tariffs Wednesday affecting all U.S. trading partners and imports, plowing ahead on a risky economic strategy that promises to further accelerate a global trade war and raise anxieties about higher consumer prices at home.

Trump hailed the massive tariffs as a "declaration of economic independence," arguing the far-reaching duties will rejuvenate the nation's declining manufacturing sector.

"We're standing up for the American worker, and we are finally putting America first," Trump said during a Rose Garden ceremony before signing the tariffs through an executive order.

But many economists worry the large-scale tariffs ‒ Trump's most expansive tariffs to date and larger than most experts expected ‒ could further hurt a weakening economy, send the stock market plummeting and even lead to a recession.

Here are five takeaways form Trump's long-awaited tariffs.

A 10% baseline tariff for all countries

Trump's tariff plan includes a 10% baseline tariff on goods from all countries, a dramatic shift in current U.S. trade policy.

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Trump declared a national emergency on trade in the U.S. ‒ which imported $1.2 trillion more in goods in 2024 than it exported ‒ as legal grounds to invoke the International Emergency Economic Powers Act of 1977 to issue the tariffs.

"We import virtually all of our computers, phones, televisions and electronics. We used to dominate the field, and now we import it all from different countries," Trump said, adding that a single shipyard in China produces more ships every year than all U.S. shipyards combined.

"Chronic trade deficits are no longer merely an economic problem, they're a national emergency that threatens our security and our very way of life," he added.

The baseline tariff applies to about 185 countries in all, even the uninhabited Heard and McDonald Islands, remote external territories of Australia in the sub-Antarctic Indian Ocean that have more penguins and seals than people and no apparent trade activity.

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Reciprocal tariffs target about 60 additional countries

Trump said he is imposing additional tailored tariffs on about 60 countries that contribute the most to the U.S. trade deficit and have placed the most barriers on U.S. exports.

A White House official called the countries "the worst offenders." Rates of the targeted tariffs have been set at about half what these countries charge on U.S. exports.

Southeast Asian countries are among the nations hit with the highest reciprocal tariffs, led by Cambodia, 49%; Laos, 48%; and Vietnam, 46%.

New duties for other major U.S. trading partnersinclude an additional 34% tariff on goods from China, a 20% tariff on goods from nations in the European Union; and a 26% tariff on goods from India.

For China, the 34% tariff is on top of recently imposed 20% tariffs on Chinese goods, meaning Chinese imports are effectively hit with a 54% tariff.

"For years, hard working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense," Trump said. "But now it's our turn to prosper."

Russia, North Korea, Cuba and Belarus are exempt from the tariffs. The White House cited previously imposed sanctions on each that "preclude any meaningful trade with these nations." Trump recently threatened sanctions on imports from Russia if President Vladimir Putindoes not end the war in Ukraine.

Trump's universal 10% tariffs are set to go into effect at 12:01 am EDT Saturday, and his reciprocal tariffs will begin April 9. Trump's previously announced 25% tariffs on foreign automobiles and auto parts, will also kick in this week.

Mexico and Canada exempt from new tariffs

Neighboring Mexico and Canada are exempt also from Trump's latest tariffs, but the 25% tariffs that Trump previously levied on both countries will remain intact.

Trump levied those tariffs last month as retaliation to the flow of fentanyl from both countries and migrants from Mexico. He later agreed to exempt goods that fall under the United States-Mexico-Canada Agreement, a trade deal Trump signed in his first term.

Imports from Canada and Mexico that are compliant with the USMCA will continue to see no tariff, according to the White House, while non-USMCA compliant goods will be hit with a 25% tariff.

Non-compliant energy products from these countries and potash ‒ key ingredient to make fertilizer used by farmers ‒ will face a lower 10% tariff.

Economists fear economic downturn

Some economists expressed alarm at the scale of Trump's across-the-board tariffs, saying they're even larger than expected and warning that an economic downturn could result.

"Those are really big tariffs, and if fully implemented, I think they'll drive the economy into a ditch," Mark Zandi, chief economist at Moody's, told USA TODAY.

Zandi said the tariffs are a tax increase that will result in higher prices for consumers and weakened profits for companies that import goods. How the economy responds will depend whether Trump moves fully ahead on the duties or agrees to various carve-outs, exemptions and relief for farmers, he said.

Since returning to the White House, Trump has deployed a whiplash approach to tariffs, threatening tariffs on some nations, only to pull back after receiving concessions. Trump's order imposing the tariffs includes "modification authority" that allows Trump to increase or decrease the tariffs rates.

"If you take those numbers at face value, I just don't know how the economy can digest that. I think that would be the prescription for a downturn," Zandi said. "They're on the very high end of what I anticipated."

Retaliation expected from U.S. trading partners

Trump's massive round of tariffs is expected to trigger retaliatory tariffs from key U.S. trading partners, further igniting a global trade war.

Ahead of Trump's announcement, EU Commission President Ursula von der Leyen signaled plans for a significant response from Europe in a speech to European Parliament members.

“Europe holds a lot of cards, from trade to technology to the size of our market. But this strength is also built on our readiness to take firm countermeasures if necessary," von der Leyen said. "All instruments are on the table."

Treasury Secretary Scott Bessent warned other nations that if they respond by raising tariffs on U.S. exports, the Trump administration will hit back.

"My advice to every country right now is do not retaliate," Bessent said in an interview with Fox News following Trump's announcement. "Sit back. Take it in. Let's see how it goes. Because if you retaliate, there will be escalation. If you don’t retaliate, this is the high-water mark."