US President Donald Trump announced sweeping tariffs against many countries on Wednesday. The move is part of his much-touted ‘America First’ strategy aimed at boosting domestic production and fixing what the president calls unfair trade practices.
The new set of tariffs escalates the trade war Trump initiated earlier with China, Canada, and Mexico.
“The current global trading order allows those using unfair trade practices to get ahead, while those playing by the rules get left behind,” the White House said. “In 2024, our trade deficit in goods exceeded $1.2 trillion – an unsustainable crisis ignored by prior leadership.”
‘Liberation Day’
Trump framed his ‘Liberation Day’ tariffs as a means to restore trade balance. He frequently accused foreign states of abusing the openness of the American market and of “ripping off” the American people.
“This is one of the most important days, in my opinion, in American history. It’s our declaration of economic independence,” Trump told reporters in the Rose Garden.
“We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers, and ultimately, more production at home will mean stronger competition and lower prices for consumers,” he said.
Baseline tariff
The US will impose a 10% baseline tariff on all imports, which will take effect on April 5. The president has argued that the measure was necessary to protect American manufacturers.
‘Reciprocal’ duties
Additionally, Trump said he will slap dozens of nations with which the US has large trade deficits with “an individualized reciprocal higher tariff,” which will take effect on April 9. He described the countries hit by extra duties as the “worst offenders.”
The nations subjected to “reciprocal” tariffs include China (34%), India (26%), Japan (24%), South Korea (25%), South Africa (30%), and the UK (10%).
EU imports hit
Trump imposed 20% duties on the goods from the EU. He said that the bloc’s total levies on American goods amounted to 39% and that US companies were paying over $200 billion per year in value-added taxes in European countries.
“European Union, they’re very tough… They rip us off. It’s so sad to see. It’s so pathetic,” Trump said.
Auto tariffs to kick in
The US president confirmed that his 25% tariffs on cars and trucks will take effect on April 3, and the 25% tariffs on auto parts will take effect on May 3.
The tariffs will cover $600 billion worth of vehicles and parts imported annually, according to Reuters.
Markets shaken
The announcement shook the stock market, as the futures tied to the Dow Jones Industrial Average dropped 2.5%, while S&P 500 futures lost 3.6%, and Nasdaq-100 futures lost 4.5%, according to .
The shares of major US companies also took a hit. Apple, Nike, and Elon Musk’s Tesla each lost about 7%.
