The US president has imposed tariffs on numerous trading partners of the United States.
President Trump has announced widespread tariffs impacting many nations, a move aligned with his “America First” agenda aimed at bolstering US production and addressing what he views as unfair global trade practices.
These new tariffs intensify the existing trade disputes Trump previously initiated with countries like China, Canada, and Mexico.
“The current global trading system disadvantages those who adhere to fair practices, while those who engage in unfair trade practices prosper,” according to a statement from the White House. “Our goods trade deficit exceeded $1.2 trillion in 2024, representing an unsustainable crisis that previous administrations failed to address.”
‘Liberation Day’
Trump characterized his ‘Liberation Day’ tariffs as a measure to rebalance trade, often accusing foreign nations of exploiting the openness of the American market and taking advantage of the American people.
“In my opinion, this is one of the most significant days in American history. It represents our declaration of economic independence,” Trump stated to reporters at the Rose Garden.
“We will significantly strengthen our domestic industrial base. We will actively pursue access to foreign markets, dismantle international trade barriers, and ultimately, increased domestic production will lead to greater competition and lower consumer prices,” he added.
Baseline tariff
Effective April 5, the US will implement a 10% baseline tariff on all imports. The president has asserted that this action is crucial for safeguarding American manufacturers.
‘Reciprocal’ duties
Furthermore, Trump announced the imposition of “an individualized reciprocal higher tariff” on several countries with substantial trade deficits with the US, effective April 9. He identified these nations as the “worst offenders.”
The countries targeted with these “reciprocal” tariffs include China (34%), India (26%), Japan (24%), South Korea (25%), South Africa (30%), and the UK (10%).
EU imports hit
Trump imposed duties of 20% on goods originating from the EU, stating that the bloc’s total tariffs on American products amounted to 39% and that US companies were paying more than $200 billion annually in value-added taxes within European countries.
“The European Union is very difficult… They take advantage of us. It’s disheartening to witness. It’s quite pathetic,” Trump remarked.
Auto tariffs to kick in
The US president confirmed that tariffs of 25% on cars and trucks will be implemented on April 3, while tariffs of 25% on auto parts will take effect on May 3.
According to Reuters, these tariffs will affect approximately $600 billion in imported vehicles and parts each year.
Markets shaken
The announcement caused disruption in the stock market, with Dow Jones Industrial Average futures decreasing by 2.5%, S&P 500 futures declining by 3.6%, and Nasdaq-100 futures falling by 4.5%, according to CNBC.
Major US corporations also experienced declines in share value, with Apple, Nike, and Tesla each losing approximately 7%.
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