U.S. President Donald Trump announced sweeping new tariffs on Wednesday, calling the day ‘Liberation Day.’ His announcement has sparked a global debate, with concerns that the new tariffs could trigger a worldwide trade war.
Trump declared that the U.S. would impose a 26% ‘reciprocal tariff’ on India.
New Tariff Rates
The U.S. has imposed the following tariffs:
- China: 34%
- European Union: 20%
- South Korea: 25%
- Japan: 24%
- Vietnam: 46%
- Taiwan: 32%
- Nepal: 10%
The U.S. will impose tariffs on around 60 countries, setting the rates at half of what those nations impose on American goods.
Tariff Implementation
According to Trump, all imported goods into the U.S. will be subject to a 10% base tariff.
- The base tariff will take effect from April 5 at 12:01 AM.
- The ‘reciprocal tariff’ will be enforced from April 9 at 12:01 AM.
Regarding the tariffs on India, Trump commented:
“India is extremely tough. Modi is a good friend, but he is not treating America fairly.”
According to Trump, India imposes tariffs of up to 52% on American products, so the U.S. will impose a 26% tariff on Indian imports in response.
“I could have imposed a fully equal tariff, but that would be too difficult for many countries, so we are not doing that,” he added.
Key Takeaways from Trump’s Address
1. 25% Tariff on the Auto Industry
The U.S. will now impose a 25% tariff on foreign-made vehicles.
- Previously, the U.S. charged only 2.4% on imported motorcycles, while India imposed 60%, Vietnam 70%, and other countries even higher rates.
Trump said,
“For 50 years, America has been getting ripped off, but this ends today.”
2. America Will Become the Richest Country
Trump claimed the tariff plan would benefit America:
“America will now be richer than any other country in the world. We stand for American workers. Finally, we are implementing the ‘America First’ policy.”
3. To Avoid Tariffs, Companies Must Manufacture in the U.S.
Trump declared that the U.S. would match tariffs imposed by other nations:
“Any country that wants access to the American market must pay the price. If they want to avoid tariffs, they must manufacture in the U.S.”
4. Jobs and Industries Will Return to America
Trump stated that many nations have prospered by exploiting the American market while blocking American goods.
“Now, America will also think about its own benefit. Jobs and industries will return to the U.S.”
5. Unfair Dairy Tariffs from Canada
Trump criticized Canada’s high tariffs on dairy products, calling them unfair to American farmers.
“The U.S. has subsidized countries like Canada and Mexico to protect their industries. Now, we will stand up for our own farmers and ranchers.”
6. America’s Economic Freedom Day
Trump declared the day of the new tariff announcement as America’s ‘Liberation Day.’
“Today, America becomes economically independent. We are introducing ‘reciprocal tariffs’—meaning, whatever tariff a country imposes on America, we will impose the same on them.”
Global Reactions and Resistance
Markets & Global Reactions
Trump made the announcement at 4 PM (20:00 GMT) at the White House’s Rose Garden, alongside his cabinet members.
He stated that the new policies would prevent the U.S. from being exploited and usher in a ‘golden era’ for American industry.
Earlier that morning, Trump posted in large letters on his Truth Social:
“Today is America’s Liberation Day!”
Major Economies Warn of Retaliation
- The European Union (EU) and Canada have vowed to retaliate.
- Canadian Prime Minister Mark Carney warned: “We will proceed cautiously with the measures needed to defend Canada.”
- The EU expressed hope for negotiations but declared that all countermeasures are on the table.
- British Prime Minister Keir Starmer engaged in discussions with Trump regarding a potential UK-U.S. trade agreement.
- Vietnam, seeking to appease Trump, has reduced tariffs on certain goods.
Meanwhile, major exporting nations China, Japan, and South Korea have accelerated free trade agreement negotiations to counter the U.S. measures.
Mexico Adjusts Growth Forecast
Mexico, citing rising tensions with the U.S., has lowered its 2025 economic growth forecast.
EU to Respond by April
The European Union has announced it will respond to Trump’s tariff decisions by the end of April.
French government spokesperson Sophie Primas stated:
“There will be two responses. The first, by mid-April, will address the existing steel and aluminum tariffs.“
“Then, a detailed sector-by-sector analysis will be conducted, and the EU will announce a strong, coordinated response by the end of April.”
French President Emmanuel Macron is scheduled to discuss the matter with European Commission President Ursula von der Leyen later in the day.
EU Trade Spokesperson Olof Gill emphasized:
“When it comes to trade policy, France does not speak for the EU. We do.“
