Trump declared a national emergency and imposed tariffs comprehensively
On April 2nd local time, the White House issued a statement saying that U.S. President Donald Trump declared a national emergency on the same day to enhance America's competitive edge, protect U.S. sovereignty, and strengthen national and economic security.
The statement said that Trump will impose a 10% "base tariff" on all countries, which will take effect at 00:01 am Eastern Time on April 5th. In addition, Trump will impose personalized higher "reciprocal tariffs" on countries with the largest trade deficits with the United States, which will take effect at 00:01 am Eastern Time on April 9th. All other countries will continue to abide by the original 10% tariff benchmark. The statement also said that Trump has the "modification authority" and can raise or lower tariffs depending on the situation.
The statement said that some goods will not be subject to "reciprocal tariffs", including steel and aluminum products, automobiles and auto parts already subject to Section 232 tariffs, goods that may be subject to future Section 232 tariffs, as well as energy and certain other minerals not available in the United States. In addition, gold bars, copper, pharmaceuticals, semiconductors and wood products are also not subject to "reciprocal tariffs".
The statement also said that for Canada and Mexico, goods that meet the requirements of the United States-Mexico-Canada Trade Agreement will continue to be exempted.
Although Trump claimed that the imposition of tariffs would help bring in revenue for the U.S. government and revitalize American manufacturing, economists and business people have warned that these tariff measures will drive up prices, harm the interests of U.S. consumers and businesses, disrupt global trade, and be detrimental to global economic development. Previously, several U.S. trading partners had indicated that they would take countermeasures in response.
