Global Trump Tariffs Revealed: What Does This Mean?

Key Takeaways

• Liberation Day announcement
• Trump's tariff breakdown
• Bullion exemption from tariffs
• Gold hits new all-time highs in major world currencies
• Market reaction to Trump's tarrifs

President Trump Reveals Global Tariffs

The much-anticipated reciprocal tariffs announcement by U.S. President Donald Trump was made on April 2, 2025, at 4pm Eastern Time (9pm UK Time). Trump stated that the day would be called 'Liberation Day' and the announcement took place in the White House garden. The audience included state senators, U.S. cabinet members, people who work in the American car industry, and the press.

Trump took center stage with his speech and then continued by showing a cardboard cutout on live television listing all countries that would face the reciprocal tariffs or the baseline tariff. This list was compiled with countries he feels are taking advantage of America through high tariffs or trade restrictions, resulting in higher rates for those countries.

Tariff Breakdown

President Trump's tariffs include a 10% baseline tariff on all imports into the United States from every country. In addition to this baseline tariff, higher reciprocal tariffs have been imposed on specific countries based on their trade practices. Specific tariffs have also been imposed on certain goods. For instance, there is a 25% tariff on car imports and parts from overseas.

For example, the UK will face a 10% baseline tariff from 5th April. Additionally, they will have to pay a 25% tariff on car imports and parts. The tariff on cars is expected to put 25,000 UK automotive jobs at risk.

How Do Trump Tariffs Work?

Trump Tariffs are not paid by the exporter; they are actually paid by the importer in America. The importer must pay the relevant percentage, depending on the country, to the U.S. government as revenue. It is then up to the company to decide whether to pass the cost of the tariff on to their customers or absorb it, affecting their own profits or changing their business strategy.

American-owned Cable News Network (CNN) reported that 'The US tariffs unveiled on Liberation Day' are expected to cost each 'American household $5,000 per year'. (See Source).

How Does This Affect Bullion?

According to the White House government fact sheet, bullion will not be subject to the reciprocal tariffs.

'Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States'. (See Source)

Gold Hits Record Highs After Trump Tariffs

Trump's tariffs announced during Liberation Day soared gold prices to record highs: $3,170 per ounce in United States Dollars and £2,430 per ounce in British Pounds. At the time of writing, the price of gold per ounce in both GBP and USD has eased.

Figure 2 - Gold Price Per Ounce: All-Time High in USD

How Has Gold Performed In 2025?

In Q1-2025, gold surged to record highs, achieving almost a 20% increase. This is the safe haven's best performance since Q3-1986, when it increased by 24%. With geopolitical tensions running high and the threat of a major trade war looming, gold has emerged as a standout asset. Will you be adding gold to your portfolio in 2025?

Stock Markets Plummet

The result of Trump Tariffs have unsettled stock markets across Asia-Pacific and Europe. CNN is currently adding live coverage which you can follow on this topic. (See Source)

Key highlights Include

• Japan’s benchmark Nikkei 225 index closed 2.8% down.
• The European region’s benchmark Stoxx 600 index was trading 1.3% lower.
• France’s CAC was 2.1% down.
• London’s FTSE 100 had fallen 1.3%.
• Dow futures were 2.5% down and S&P 500 futures 3% lower.
• The tech-heavy Nasdaq was set to open 3.3% lower.

Summary

In conclusion, President Trump's new tariffs have sparked significant economic reactions globally. Gold prices have soared to record highs, while stock markets have experienced notable declines. As these changes unfold, it's crucial to stay informed and consider how they might affect your investments and the broader economy.

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