US President Donald Trump on Wednesday officially introduced his long-anticipated "reciprocal tariffs," a move expected to disrupt global trade relations.
Speaking from the White House Rose Garden on Wednesday, Trump signed executive orders authorizing the new tariffs, standing before a backdrop of large US flags.
He justified the tax increases as a necessary response to what he described as unfair trade practices, portraying the US as a nation exploited by both allies and adversaries.
"For decades, our country has been looted and plundered by nations near and far, both friend and foe alike," Trump declared to an audience of manufacturing workers, cabinet officials, and journalists.
He framed the announcement as a turning point, calling April 2, 2025, "the day American industry was reborn."
Under the new policy, a 10% tariff will apply to all imports beginning April 5. Additionally, countries with the largest trade deficits with the US will face individual tariffs, calculated at half the rate those nations impose on American exports.
These country-specific tariffs, set to take effect on April 9, include 34% on China, 20% on the European Union, and 46% on Vietnam.
Commerce Secretary Howard Lutnick joined Trump to display a chart outlining the tariffs. Notably, Canada and Mexico were exempt from the new rates but will still face separate tariffs on non-trade-agreement goods, with a 25% rate on most imports and a 10% rate on energy products.
The announcement triggered an immediate global backlash. Australian Prime Minister Anthony Albanese called the tariffs "unwarranted" and pledged to protect his country’s industries.
Irish leader Micheál Martin warned of potential economic harm, stating, "Tariffs benefit no one. They hurt businesses and consumers alike."
Even Canadian Prime Minister Mark Carney, whose country avoided the steepest tariffs, voiced strong opposition, vowing to fight US trade policies and protect Canadian workers. Meanwhile, Mexico’s President Claudia Sheinbaum opted against retaliatory measures, stating that "tit-for-tat tariffs" would not be pursued.
Economists warn that the tariffs could drive up consumer prices, disrupt supply chains, and increase inflation, potentially leading to a recession. While Trump insists the measures will revive American manufacturing and reduce trade deficits, critics argue that such benefits could take years to materialize.
Stock markets reacted swiftly to the announcement, with futures markets dipping into negative territory after an initially strong session. Analysts remain divided on the long-term impact, with some believing the market has already priced in the effects, while others fear further instability.
Despite international criticism, Trump dismissed concerns about economic fallout. Addressing foreign leaders who might request exemptions, he bluntly stated, "Terminate your own tariffs. Drop your barriers. Don’t manipulate your currencies."
As global trade partners brace for potential countermeasures, Trump's sweeping tariff policy signals a dramatic shift in US economic strategy, setting the stage for intensified trade tensions in the months ahead.
Source: Al Jazeera
BDST: 0950 HRS, APR 03, 2025
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