On April 2, 2025, U.S. President Donald Trump officially announced the implementation of a 20% tariff on nearly all goods imported from the European Union, a move he termed a response to perceived trade imbalances.

Dubbed 'Liberation Day,' the initiative aims to bolster U.S. manufacturing and is expected to include reciprocal tariffs against numerous other countries as well.

In his address, Trump emphasized, "Other nations impose high tariffs on us.

Now it's our turn to reciprocate," asserting that the new tariffs would bring back jobs and manufacturing facilities to the United States.

In reaction to the announcement, the U.S. stock markets responded negatively.

Significant declines were observed in the tech sector, with shares of major companies such as Apple dropping by 6.1%, Microsoft by 2%, and Nvidia by 4.7%.

Other firms, including Amazon and Meta, also experienced declines of 5% and 4.7%, respectively.

This market turbulence reflects the widespread apprehension regarding potential economic repercussions stemming from the tariff implementation.

The chemical industry quickly voiced its concerns about the escalating trade tensions.

Wolfgang Große Entrup, CEO of the German Chemical Industry Association, lamented the government's decision, advising for a cautious approach and expressing hope that the European Union would respond flexibly and maintain dialogue with Washington.

He emphasized the need for a unified EU front to advocate for a fair resolution beneficial to all parties involved.

In the United Kingdom, Economic Secretary Jonathan Reynolds stated that the country would remain "calm and determined" in the face of U.S. tariffs, reiterating the commitment to pursue a trade agreement with the United States.

The U.S. had initially proposed a 10% tariff rate for British goods in conjunction with the broader tariff announcement.

Following the tariff declaration, gold prices saw an uptick, rising by 0.7% to $3,133.57 per ounce.

Analysts indicated that the unexpected aggressiveness of the tariffs could lead to increased investments in gold due to its status as a safe haven in turbulent economic times.

Market analysts projected the potential for gold to reach $3,200 in the near future.

The announcement also specifically impacted the automotive sector, as the imposed tariffs will apply not only to vehicles but also to components integral to car manufacturing, including transport vehicles, engines, lithium batteries, and parts like tires and shock absorbers.

This broader inclusion suggests significant implications for U.S. and international automotive industries.

During the announcement event, Trump did not entertain questions from journalists but concluded his remarks with a promise of national prosperity, stating, "You will be very happy and secure.

We will build America’s future with American hands, hearts, and steel."

This trade policy shift arrives amid reports that Elon Musk is stepping down from his advisory role within the White House, signaling potential changes in the Trump administration's economic strategy.