On Wednesday, President Donald Trump outlined what he described as a tariff war declaration by the United States against the world. Speaking from the Rose Garden at the White House, he revealed a plan that had been in the works for weeks. "Today, we have some good news to share," Trump stated as he announced a 25% tariff on all foreign-made cars, effective from midnight, as reported by El País.
Additionally, Trump disclosed a broad 10% tariff on all imports from any nation, with higher rates imposed on countries he accused of exploiting the U.S. The European Union, for example, will face a 20% levy. "April 2 will be remembered as the day the U.S. industry was reborn. We've been deceived for over 50 years, but not anymore," he asserted.
Currently, the U.S. has already imposed a 25% tariff on numerous imports from Canada and Mexico, which, according to Trump, aim to pressure these nations into taking stronger action against illegal immigration and fentanyl smuggling.
Trump also declared this Wednesday as the "economic independence day of the United States" and signed an executive order that he claimed would "build a wall against imports." In a speech filled with assertive statements, he proclaimed that his trade policy would not only protect jobs but also make the U.S. "richer than any other country."
The president announced a 34% tariff on all Chinese products, following hints of a possible trip to Beijing. "I have great respect for Xi, the president of China, but they're taking advantage of us," he remarked.
Surrounded by American flags and industrial workers, Trump emphasized that the country's new economic era would require legal labor: "We will need people to work, but legally. People who love our country."
Despite the defiant tone of the speech and economists' warnings of a potential global recession, financial markets reacted positively. Major Wall Street indices closed higher on the day of the announcement: the S&P 500 rose 0.67%, the Dow Jones increased 0.56%, and the Nasdaq went up 0.87%.
In addition to the White House announcement, the administration released a detailed list of reciprocal tariffs by country via the Rapid Response 47 account on social media platform X. This table outlines adjusted tariffs based on the rates countries allegedly apply to U.S. products, including trade barriers and currency manipulation. Thus, countries imposing the highest duties on American exports now face increased tariffs in return.
Among the most notable cases is Vietnam, which reportedly charges a 90% tariff on U.S. goods and will now face a 46% levy. Following are Cambodia (97%), Laos (95%), Myanmar (88%), and Madagascar (93%), which will be hit with tariffs of 49%, 48%, 44%, and 47%, respectively.
China, attributed with a 67% tariff on U.S. products, will now confront a 34% tariff. Taiwan (64%) will see a 32% rate; India (52%), a 26% rate; Thailand (72%), a 36% rate; and Switzerland (61%), a 31% rate. As for the European Union, which Trump directly accused of "cheating the U.S. for years," a 20% tariff will be applied in response to the purported 39% tariffs it imposes on U.S. trade.
Other Latin American nations also appear on the list. Nicaragua, which reportedly charges a 36% tariff according to Washington, will face an 18% rate; Serbia (74%), Bangladesh (74%), and Botswana (74%) will each face a 37% tariff.
In contrast, several countries will retain the minimum 10% tariff set by Trump as a general base, including Brazil, Colombia, Chile, Peru, Costa Rica, Argentina, Guatemala, Honduras, El Salvador, the Dominican Republic, Trinidad and Tobago, Egypt, Saudi Arabia, Singapore, Australia, and Israel, among others.
According to the administration, these "adjusted" tariffs represent an act of trade reciprocity against decades of imbalances. However, economists and trade partners have warned that the method used to calculate these rates includes internal taxes like VAT and other non-tariff charges, potentially sparking conflicts in the World Trade Organization (WTO) and new diplomatic tensions.
Understanding Trump's Global Tariff Strategy
What are the new tariffs imposed by Trump?
Trump announced a 25% tariff on all foreign-made cars and a general 10% tariff on imports from any country, with higher rates for countries he claims exploit the U.S.
How have financial markets responded to Trump's tariff announcement?
Despite warnings of a potential global recession, financial markets reacted positively, with major Wall Street indices closing higher on the day of the announcement.
Which countries will face the highest tariffs?
Countries like Vietnam, Cambodia, Laos, Myanmar, and Madagascar will face some of the highest tariffs, ranging from 44% to 49%, due to their high tariffs on U.S. products.