President Trump Imposes ‘Liberation Day’ Tariffs: How Families Should Respond

by Zachary Mettler | April 7, 2025 | Government Updates

In his “Liberation Day” speech on Wednesday, April 2, President Trump announced the imposition of “reciprocal tariffs” on dozens of foreign countries.

“My fellow Americans, this is Liberation Day,” the president declared. “April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again.”

The Tariffs

The president signed two executive orders, “Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports” and “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits.”

The first order closes the de minimis exemption which allowed U.S. consumers to buy cheap Chinese goods without any import fees or typical customs inspections, as long as each package is worth less than $800. These shipments now face a 30% tariff with a minimum $50 fee.

The second, more consequential executive order declares a national emergency over the United States’ $1.2 trillion annual trade deficit, creates a baseline 10% tariff on all imports, and imposes greater “reciprocal tariffs” on dozens of countries that – through currency manipulation, tariffs, and other practices – make it more expensive for U.S. companies to sell their products overseas.

WASHINGTON, DC – APRIL 02: U.S. President Donald Trump, accompanied by White House staff secretary Will Scharf, signs executive orders imposing tariffs on imported goods during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as “Liberation Day”, Trump announced sweeping new tariffs targeting goods imported to the U.S. on countries including China, Japan and India. (Photo by Andrew Harnik/Getty Images)

Tariffs are trade barriers imposed by governments to regulate imports and exports. They are a tax on foreign goods imported and sold domestically.

Governments enact tariffs for two primary reasons: (1) to increase revenue though taxing foreign goods and (2) to protect domestic manufacturing from being undercut by cheaper goods made overseas.

The president hopes to utilize the newly enacted tariffs to make it easier for U.S. companies to sell their goods and products overseas. Speaking to foreign countries with large tariffs on U.S. goods, the president said, “Terminate your own tariffs and drop your barriers.”

The “free trade” environment of the last several decades has led to:

The outsourcing of American jobs overseas. U.S. manufacturing accounted for 17.4% of the global manufacturing output in 2023 compared to 28.4% in 2001.
Increased reliance on foreign producers for goods, leaving the U.S. supply chain vulnerable to geopolitical disruption and supply shocks.
The loss of 5 million manufacturing jobs from 1997 to 2024.

The president has long been a fan of tariffs, even endorsing them to Oprah in an interview 35 years ago.

Tariffs for Better or Worse

Tariffs usually have mixed economic effects. They generally help boost domestic manufacturing and increase the availability of blue-collar jobs by making foreign goods more expensive. This can lead to increased prosperity for blue-collar workers and their families.

Indeed, various companies have already announced massive domestic manufacturing investments, including:

$500 billion from Apple
$500 billion by OpenAI, Oracle, and Softbank
Hundreds of billions by Nvidia
$100 billion from TSMC
$27 billion from Eli Lilly and Company
$20 billion from DAMAC Properties
$8 billion by Merck

These companies will try to avoid paying tariffs by producing more goods domestically.

However, since they make cheap, foreign goods more expensive, tariffs also end up reducing some companies’ profitability, decreasing equity and stock values, and leading to a risk of increased inflation.

After the president’s announcement, financial markets sharply retreated, with the Dow Jones Industrial Average falling 1,679 points on Thursday and another 2,231 points on Friday.

The Nasdaq Composite fell into a bear market on Friday after taking a 20% dive from its recent peak. All told, $6.6 trillion in market value was lost in the two-day sell-off.

The tariff announcement also raises the prospect of a trade war, when other countries raise their tariffs in retaliation – until someone backs down.

So, while equity valuations will likely continue declining for now, the tariffs will hopefully spur domestic production, manufacturing, and job creation, and increase wages for blue-collar jobs.

How Families Should Respond

American families will likely face increased economic uncertainty in the coming months while the tariffs impact the economy. This can easily lead to amplified financial stress and worry among American families.

The Daily Citizen spoke with Geremy Keeton, Licensed Marriage and Family Therapist and Senior Director of Counseling at Focus on the Family, who urged couples to be active and intentional in addressing financial troubles and conflicts.

“Financial coordination and problem-solving as a married couple never happen with passivity,” Keeton said. “There needs to be intentionality and planning; it’s a skill, and sometimes couples need to get creative about how to draw upon each of their unique strengths in navigating a joint and structured plan.”

“We don’t always learn from our families-of-origin how to handle our finances wisely,” Keeton said, “so it’s also good to get outside advice so you can grow in financial competency.”

A 2018 survey from Ramsey Solutions found that money is the number one issue couples fight about, concluding that “both high levels of debt and a lack of communication are major causes for the stress and anxiety surrounding household finances.”

Ramsey’s survey also revealed that “money fights are the second leading cause of divorce, behind infidelity” (emphasis added).

“Most importantly,” Keeton emphasized, “it’s key to realize that finances are often a symptom [or outgrowth] of couple communication, power dynamics, emotional engagement and even spiritual commitments in the relationship.” He added,

Working to define — and document — shared value commitments and investing in healthy emotional intimacy can both undergird good financial planning and wise stewardship of shared resources.

If you’re struggling financially or looking to improve your financial wellbeing or communication within your marriage, check out our available resources and articles below.

To speak with a family help specialist or request resources, please call us at 1-800-A-FAMILY (232-6459).

If you’re struggling with conflict in your marriage, or any other issue, Focus on the Family offers a one-time complimentary consultation with our ministry’s professionally trained counseling staff. The consultation is free due to generous donor support.

To reach Focus on the Family’s counseling service by phone, call 1-855-771-HELP (4357) weekdays 6:00 a.m. to 8:00 p.m. (Mountain Time). Please be prepared to leave your contact information for a counselor to return a call to you as soon as possible. Alternatively, you can fill out our Counseling Consultation Request Form.

Related articles and resources:

Counseling Consultation & Referrals

Healthy Budgeting Habits for Your Marriage

When Your Money and Marriage Clash

Getting on the Same Page Financially in Marriage

Equipping Your Kids to Handle Money

Cash Clash: How to Talk About Budgeting

How Can My Spouse and I Get Out of Debt?

How to End Conflicts With Money in Your Marriage

Money and Marriage: Is It His, Hers, or Ours?

Marriage and Money: What Does God Expect?

Focus on the Family: Money & Finances