Trump Announces Reciprocal Tariffs Worldwide

By Staff, Agencies

US President Donald Trump on Wednesday introduced sweeping tariffs, branding the move as "Liberation Day" in a bid to protect American industry, a decision that risks triggering a global trade war.

Speaking from the White House Rose Garden, flanked by US flags, Trump considered that the United States had been "looted, pillaged, plundered by nations near and far, both friend and foe alike."

The dollar fell 1% against the euro and slipped against other major currencies as Trump was speaking.

While he did not immediately outline the full scope of the tariffs, the 78-year-old Republican stated that he was signing an executive order to impose "reciprocal tariffs on countries throughout the world" based on how they treat the US.

"This is Liberation Day," Trump proclaimed, adding that it would "forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed."

His speech was met with enthusiastic cheers from cabinet members and workers in hard hats representing industries such as steel, oil, and gas, as he vowed that the tariffs would "make America wealthy again."

Trump had been signaling the move for weeks, asserting that tariffs would prevent the US from being "ripped off" and usher in a new "Golden Age" of American industry. However, many economists warn that the tariffs could push the US into recession as costs trickle down to consumers while also escalating global trade tensions.

Trump directed some of the steepest tariffs at what he described as "nations that treat us badly," imposing 34% on imports from geopolitical rival China, 20% on key ally the European Union, and 24% on Japan.

For the rest, Trump said he would impose a "minimum baseline" 10% tariff on trading partners, including Britain and Ukraine.

Trump's new tariffs on US trading partners are set to take effect this weekend, White House officials announced, with higher rates on the "worst offenders" scheduled to follow next week.

Additionally, Trump signed an executive order that closes a trade loophole used to ship low-value packages duty-free from China, known as "de minimis," Reuters reported, citing an aide.

The European Union pledged to respond "before the end of April," initially targeting US actions on steel and aluminum before expanding countermeasures sector by sector.

British Prime Minister Keir Starmer, who has sought but failed to secure an exemption from the tariffs, warned that a "trade war is in nobody’s interest," vowing that his government was prepared for "all eventualities."

Meanwhile, Germany cautioned that trade conflicts harm "both sides."

While Trump remains steadfast in his belief that tariffs are the solution to America's trade imbalances and economic struggles, critics argue that US businesses and consumers will bear the cost.

European Central Bank President Christine Lagarde warned that, regardless of other nations’ responses, the impact "will be negative anyway the world over."

Trump has previously backed down on tariffs targeting Canada and Mexico amid trade negotiations, though he had initially imposed levies on them, citing their failure to curb the flow of the deadly opioid fentanyl into the US.

The US president has previously implemented 20% tariffs on all imports from China, along with 25% tariffs on steel and aluminum, which have now been expanded to cover nearly $150 billion worth of related downstream products.