US: In a bold shift in US trade policy, President Donald Trump announced sweeping new tariffs, imposing a 10 percent universal tariff on all imported goods and additional “reciprocal tariffs” on select nations.
The announcement, made in a dramatic White House Rose Garden event, has sent shockwaves through global markets and sparked fears of a trade war.
A ‘Liberation Day’ for US Trade?
— Donald J. Trump (@realDonaldTrump) April 2, 2025
Calling the move a historic moment, Trump declared April 5 as the start of a “golden age” for American trade. “For decades, America has been looted, pillaged, and cheated,” he asserted, insisting that the new tariffs would level the playing field. The 10 percent universal tariff is set to take effect on April 5, with the reciprocal tariffs following on April 9.
Trump justified the additional reciprocal tariffs by accusing several nations of unfair trade practices.
According to a White House chart displayed during the speech, China imposes a 67 percent tariff on US goods, and under the new policy, the US will charge a 34 percent tariff in return.
The EU, which allegedly levies 39 percent on US imports, will now face a 20 percent tariff, while the UK will see a 10 percent charge- matching what the Trump administration calculates as its fees on American goods.
Selective Exemptions
While Canada and Mexico had previously been targets of Trump’s proposed broad tariffs, goods covered under existing trade agreements with these countries will remain tariff-free.
Trump also emphasized that tariff calculations consider “currency manipulation and trade barriers,” though details on the methodology remain unclear.
Trump positioned the tariffs as a necessary measure to counteract these policies, arguing that America is merely responding with “common sense reciprocal tariffs.”
Economic and Political Reactions
The announcement has triggered mixed reactions. Supporters see the tariffs as a fulfillment of Trump’s campaign promise to revive American manufacturing and push back against foreign trade practices.
The event featured a patriotic display, with nine giant US flags flanking Trump as he spoke before a crowd of union workers in hard hats and fluorescent vests. In a signature moment, Trump even tossed a “MAGA” hat into the crowd before unveiling the new tariffs.
Critics, however, warn of dire economic consequences. Canada’s Prime Minister Mark Carney denounced the tariffs as “unjustified” and pledged retaliation. The European Union has also vowed to implement countermeasures.
Public Sentiment
Despite Trump’s optimism, economic indicators suggest potential fallout. The stock market has seen its worst quarter in over two years, and consumer confidence plunged in March to its lowest level in four years.
Polls indicate that tariffs remain unpopular with the public, even among Republican voters.
Trump’s new tariffs add to an already complex landscape of trade barriers, including a 20 percent tariff on Chinese imports, a 25 percent tariff on steel and aluminum, and a 10 percent tariff on energy imports from Canada. Additionally, a 25 percent tariff on all imported vehicles and auto parts is set to take effect later this week.
