President Donald Trump officially announced the implementation of long-anticipated reciprocal tariffs today, marking a significant step in his broader strategy to reshape global trade. The new policy imposes steep taxes on goods entering the United States, depending on how the administration calculates duties based on US exports and other “nonmonetary” trade barriers, such as currency manipulation or environmental standards seen as too lenient.

The tariffs target a wide swath of international trade, potentially affecting goods worth billions, if not trillions, of dollars. Key US trading partners will see substantial levies: 34% on Chinese goods, 20% on those from the European Union, 26% on imports from India, and 24% on Japanese products, among others.

Following Trump’s announcement, US stock markets reversed course, with the S&P500 futures dropping 1.5% in after-hours trading.