President Donald Trump announced new tariffs on foreign countries. But three major countries were missing from the list. Mexico, Canada, and Russia were not included. This decision surprised many because these countries are key players in global trade. However, Trump had already placed tariffs on Mexico and Canada before this announcement. He set a 25% on auto imports from these countries.

Some Canadian and Mexican Goods Are Still Exempt from Tariffs

A White House fact sheet explained why some goods from Canada and Mexico were not taxed. Goods that followed the 2020 USMCA trade deal would remain tariff-free. This means products that meet the agreement’s rules will not face extra charges. However, non-compliant energy and potash from these countries would now have a 10%. This move aims to encourage companies to follow the trade deal’s requirements. Treasury Secretary Scott Bessent confirmed that these exemptions would remain in place for now.

Russia Excluded Because the U.S. Does Not Trade with Them

Treasury Secretary Scott Bessent explained why Russia was not on the list. He said the U.S. does not trade with Russia due to existing sanctions. The U.S. also does not trade with Belarus for the same reason. These sanctions were imposed after Russia invaded Ukraine. Because of this, there was no need to add new tariffs on Russian goods. Bessent emphasized that the focus was on countries that actively trade with the U.S.

China Faces One of the Highest Tariffs Under New Trade Policy

Some countries faced higher tariffs than expected. China, a major U.S. trading partner, was hit with a 54% tariff. This is one of the highest tariffs in recent history. Trump said this move was necessary to protect American businesses. However, the announcement caused stock markets to drop sharply. Investors worried about the impact on global trade. The uncertainty led to major losses in stock values. Companies that rely on imports from China were especially affected.

Many Countries Targeted as U.S. Expands Tariffs Globally

Trump also set tariffs on many other countries. The European Union faced a 20% tariff. Trump called the EU “very tough” in trade. He claimed that they took advantage of the U.S. and said it was time to fight back. Vietnam received a 46% tariff. Trump called them “great negotiators” but said the U.S. had a 90% trade deficit with them. Other tariffs included 32% for Taiwan, 24% for Japan, and 26% for India. These new tariffs could lead to trade tensions between the U.S. and these nations.

Stock Market Falls as Businesses React to Announcement

Stock futures fell sharply after Trump’s announcement. The Dow Jones Industrial Average lost 1,007 points, or 2.3%. The S&P 500 dropped 3.4%, and Nasdaq-100 lost 4.2%. Companies that rely on imports were hit hard. Nike and Apple stocks fell by 7%. Budget retailers like Dollar Tree lost 11%, and Five Below dropped 15%. Investors worry that higher tariffs will lead to higher costs for businesses and consumers. This uncertainty may continue to impact the market in the coming weeks.