On April 2, 2025, President Donald Trump announced “Liberation Day” and announced a series of comprehensive tariffs aimed at reshaping U.S. trade relations and strengthening domestic industries. The new policy introduces a 10% universal tariff on all imports, with interest rates significantly higher in specific countries and products.
- China: Importing an additional 34% tariff, cumulatively resulting in a 54% duty on certain commodities.
- EU (EU): Product tariffs of 20%.
- Japan: The import tax rate is 24%.
- car:Tariffs for all foreign-made cars are 25%.
President Trump has referred to these measures as the “Declaration of Economic Independence” which he said is necessary to offset unfair trade practices and restore U.S. manufacturing. He stressed that the purpose of tariffs is reciprocity, reflecting trade barriers imposed by other countries on U.S. products (The New York Post).
White House Reasons:
In a recent press release, the Trump administration argued that comprehensive tariffs were needed, citing national security and domestic food security needs. The government also cited the positive impact of tariffs on domestic manufacturing and pointed out the positive impact of manufacturing employment on local communities (White House).
Domestic and international responses:
The announcement has a series of responses both domestically and internationally:
- Domestic attention: Economists and business leaders expressed concerns that these tariffs could lead to higher consumer prices and disruptions in supply chains, according to investors’ daily operations. Major U.S. companies including Apple, Nike, Walmart and Tesla experienced a sharp decline in stocks in response to the news.
- Political Opposition: Democratic leaders criticized tariffs as reckless, warning them that they could put the economy into recession.
- International rebound: Major allies, including the UK, Norway, Switzerland, Australia and the EU, have condemned the tariffs, warning them that they might escalate global tensions and damage the international economy. The EU is considering a response with retaliation measures.
Exemptions and implementation:
It is worth noting that Canada and Mexico are exempt from these new tariffs. The 10% benchmark tariff is scheduled to come into effect on April 5, 2025, and higher country-specific interest rates will begin on April 9, 2025.
According to the Wall Street Journal, Treasury Secretary Scott Bessent told lawmakers that the tariffs were used as ceilings rather than floors, indicating that they are not expected to increase further and that negotiations may take place. However, President Trump has suggested that tariffs could be escalated if other countries retaliate (WSJ).
With the impact of global communities on these grand tariffs, the full consequences of international trade and the U.S. economy remain uncertain.
Editor’s Note: This article was created using the AI part.
