US “Liberation Day” Reciprocal Tariffs Analysis
Overview
President Trump announced a sweeping new set of “reciprocal” tariffs from the Rose Garden at the White House after the markets closed on April 2, 2025, in what he called “Liberation Day.”
While Canada and Mexico were excluded from the new “reciprocal” tariffs, both countries remain subject to the 25% tariffs on steel and aluminum (imposed on March 12, 2025), as well as tariffs on automobiles (imposed at midnight on April 3, 2025) and auto parts (to be implemented no later than May 3, 2025). Additionally, the existing fentanyl/migration orders remain in effect, meaning that non-USMCA compliant goods from Canada and Mexico continue to face a 25% tariff, with non-USMCA compliant energy and potash imports seeing a 10% tariff.
This analysis examines the economic impact of these tariffs across countries, with a special focus on their effect on Canadian exports to the United States. The data is based on official US Bureau of Economic Analysis (BEA) import figures for the full year of 2024, last updated on March 20, 2025.
Tariff Impact by Country
The chart below shows the weighted annual tariff impact of the new tariffs on the top 15 countries, calculated by multiplying each country's export value to the US by the applicable tariff rate.
China faces the largest penalty in absolute terms, with the 34% tariff rate applied to its $439.75 billion in annual exports to the US (excluding the 20% tariffs already in place). Vietnam follows with a staggering 46% tariff rate on its $136.58 billion in exports.
While Canada was excluded from the general “reciprocal” tariffs, it still faces significant tariffs on specific sectors that amount to a weighted annual impact of $ billion on Canadian exporters (i.e., $ billion in goods tariffed times sector-specific tariff rates of between 12.5% and 25.0%).
Impact on Canadian Exports
Though not subject to the new “reciprocal” tariffs, Canada still faces 25% tariffs on steel, aluminum, and auto parts, as well as 12.5% tariffs on automobiles. For automobiles, the effective rate is reduced to 12.5% due to the fact that Canadian-made vehicles typically contain more than 50% American parts, whereas auto parts could face the full 25% tariff.
| Sector | Export Value in 2024 (USD) | Tariff Rate | Weighted Annual Impact (USD) |
|---|---|---|---|
| Steel | $7.1 billion | 25% | $1.77 billion |
| Aluminum | $9.4 billion | 25% | $2.35 billion |
| Automobiles | $31.2 billion | 12.5% | $3.90 billion |
| Auto Parts | $19.5 billion | 25% | $4.88 billion |
| Total | $67.2 billion | Varied | $ billion |
| Sector | Exports ($B) | Tariff | Impact ($B) |
|---|---|---|---|
| Steel | $7.1B | 25% | $1.77B |
| Aluminum | $9.4B | 25% | $2.35B |
| Automobiles | $31.2B | 12.5% | $3.90B |
| Auto Parts | $19.5B | 25% | $4.88B |
| Total | $67.2B | Varied | $B |
Note that the weighted annual tariff impact on Canadian exports of $ billion is a crude benchmark, constructed to provide a single number to compare the impact of US tariffs on countries facing sector-specific tariffs (i.e., Canada and Mexico) vs. “reciprocal” tariffs (i.e., all other countries). It is not a prediction of the actual impact on Canadian exports into the US in 2025.
What This Means for Canadians
These tariffs will significantly impact Canadian manufacturers and exporters, particularly in the automotive, steel, and aluminum sectors. The weighted annual impact of $ billion represents a substantial economic burden that will likely lead to:
- Higher prices for Canadians on goods containing US components
- Potential job losses in export-oriented manufacturing sectors
- Redirection of Canadian exports to other markets
- Incentives for Canadian companies to source materials and components domestically
As these tariffs take effect, many Canadians are changing their vacation plans and buying Canadian to help strengthen our economy and vote with our wallets. USAboycott.ca is committed to helping Canadians find Canadian alternatives to American products.
Complete Tariff Table
Below is a comprehensive list of the “reciprocal” tariff rates announced on April 2, 2025 (“Liberation Day”), along with the weighted annual impact of the “reciprocal” tariffs (and sector-specific tariffs).
| Country | Import Value (2024) | Reciprocal Tariff Rate | Weighted Annual Impact |
|---|---|---|---|
| China | $439.75B | 34% | $B |
| Vietnam | $136.58B | 46% | $B |
| Thailand | $63.38B | 36% | $B |
| Switzerland | $63.50B | 31% | $B |
| South Korea | $133.08B | 25% | $B |
| Taiwan | $116.37B | 32% | $B |
| India | $87.46B | 26% | $B |
| Malaysia | $52.57B | 24% | $B |
| Japan | $149.55B | 24% | $B |
| Germany | $161.04B | 20% | $B |
| Ireland | $103.45B | 20% | $B |
| Italy | $76.82B | 20% | $B |
| France | $60.36B | 20% | $B |
| Netherlands | $34.58B | 20% | $B |
| Belgium | $28.00B | 20% | $B |
| Spain | $21.65B | 20% | $B |
| Austria | $17.76B | 20% | $B |
| Sweden | $18.05B | 20% | $B |
| United Kingdom | $69.12B | 10% | $B |
| Brazil | $42.53B | 10% | $B |
| Singapore | $42.93B | 10% | $B |
| Indonesia | $28.10B | 32% | $B |
| Israel | $22.24B | 17% | $B |
| Australia | $16.95B | 10% | $B |
| Philippines | $14.04B | 17% | $B |
| Canada | $420.49B | N/A* | $B |
| Mexico | $515.95B | N/A* | $B |
| Country | Imports (2024) | Rate | Impact ($B) |
|---|---|---|---|
| China | $439.8B | 34% | $B |
| Vietnam | $136.6B | 46% | $B |
| Thailand | $63.4B | 36% | $B |
| Switzerland | $63.5B | 31% | $B |
| South Korea | $133.1B | 25% | $B |
| Taiwan | $116.4B | 32% | $B |
| India | $87.5B | 26% | $B |
| Malaysia | $52.6B | 24% | $B |
| Japan | $149.6B | 24% | $B |
| Germany | $161.0B | 20% | $B |
| Ireland | $103.5B | 20% | $B |
| Italy | $76.8B | 20% | $B |
| France | $60.4B | 20% | $B |
| Netherlands | $34.6B | 20% | $B |
| Belgium | $28.0B | 20% | $B |
| Spain | $21.6B | 20% | $B |
| Austria | $17.8B | 20% | $B |
| Sweden | $18.1B | 20% | $B |
| United Kingdom | $69.1B | 10% | $B |
| Brazil | $42.5B | 10% | $B |
| Singapore | $42.9B | 10% | $B |
| Indonesia | $28.1B | 32% | $B |
| Israel | $22.2B | 17% | $B |
| Australia | $16.9B | 10% | $B |
| Philippines | $14.0B | 17% | $B |
| Canada | $420.5B | N/A* | $B |
| Mexico | $516.0B | N/A* | $B |
* Canada and Mexico are not subject to the new “reciprocal” tariffs but face specific tariffs on steel (25%), aluminum (25%), automobiles (12.5%), and auto parts (25%).
Sources and Methodology
The data presented on this page is based on 2024 import values from the Bureau of Economic Analysis (BEA), last updated on March 20, 2025, and the tariff rates announced by the US administration on April 2, 2025 (“Liberation Day”) and March 12, 2025 (steel and aluminum tariffs).
For Canada and Mexico, we calculated the total tariff impact by considering only the sectors affected by tariffs (steel, aluminum, automobiles, and auto parts). The rate for automobiles is estimated at 12.5% instead of the full 25%, reflecting that roughly 50% of Canadian auto exports contain American parts, while auto parts face the full 25% tariff.
This analysis will be updated as new information becomes available or as tariff policies change.
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