Yahoo Finance

US stock futures are plunging this morning after President Trump's sweeping tariff plan ratcheted up global trade tensions and fears of slowing growth. Here with the details on what was announced yesterday, we've got Yahoo Finances Jennifer Schonberger. Good morning, Jennifer.

Good morning, Julie. President Trump levying the most aggressive tariffs in 100 years, calling it an important day in American history, declaring it an a day of American economic independence that will make the US wealthy again.

We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers. And ultimately more production at home will mean stronger competition and lower prices for consumers. This will be indeed the golden age of America. It's coming back. We're going to come back very strongly.

The president is imposing a baseline tariff of 10% on all countries, which will kick in on April 5th at 12:01 a.m. Then on April 9th, that number will ratchet up to a customized tariff rate called the reciprocal rate on what the administration calls the US's worst offenders. There are about 160 countries facing those so-called reciprocal tariffs. The reciprocal rate is calculated as the sum of all unfair trade practices, including tariffs and non-tariff barriers, like intellectual property theft, VATs, and dumping. Then officials will impose 50% of whatever that reciprocal rate is. So that rate will be halved. Now, those reciprocal rates will come on top of already outstanding tariffs. Uh, most of those actions taken under the emergency economic powers Act aimed at clamping down on illegal border crossings as well as fentanyl smuggled into this country. So looking at some examples here, China's reciprocal tax rate is calculated at 67%, but that is halved to 34%. Then because China is subject to 20% tariffs under the emergency powers already, the total rate jumps to 54%. Meanwhile, the EU faces a tariff of 39%, which is cut to 20%, while Vietnam faces a 90% tariff, which is cut to 46%. Meanwhile, nothing has changed on Canada and Mexico. They are still subject to the carve out on the US, Canada, Mexico agreement. Uh, under that agreement, there are 0% tariffs unless they are not compliant with that agreement, which means they are then subject to 25% tariffs, though there is still a 10% tariff on Canadian potash. Now, this is not the end of tariffs. Senior White House officials have said that more tariffs will be coming under section 232 on copper and lumber, as well as a different tariff regime on critical minerals, semiconductors and pharmaceuticals. Today, just one day after announcing these aggressive tariffs, the President heads to his golf club in Doral in Miami. After that, he will head to Mar-a-Lago where he will overnight. Back to you.

Jennifer, thank you so much.