US President Donald Trump declared a national emergency to enforce his extensive new tariff policy, called "Liberation Day" tariffs, imposing a 10 per cent baseline duty on nearly all imports. The measures, which included steeper "reciprocal" levies on key allies such as the European Union, Japan, and Israel, were unveiled after the close of stock trading on Wednesday.
Trump, speaking from the Rose Garden, described the move as a "declaration of economic independence," emphasising its importance for the American economy. "This is one of the most important days, in my opinion, in American history. It’s our Declaration of Economic Independence," he said.
“Factories will come roaring back into our country — and you see it happening already. We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers.”
Trump, who has long advocated for these tariffs said, “If you look at my old speeches, where I was young and very handsome … I’d be on a television show, I’d be talking about how we were being ripped off by these countries. I mean, nothing changes very much,” he said.
“It’s such an honor to be finally able to do this.”
‘Golden age of America’
The new tariffs, which will take effect from 12.01 am on Saturday, significantly increase the average US tariff rate, nearly tripling the pre-January baseline. The reciprocal duties, which are tailored based on trade deficits with individual countries, will be implemented from April 9. These include a 20 per cent tariff on EU imports, 24 per cent on Japanese goods, and 17 per cent on Israeli products.
"We will charge them approximately half of what they are and have been charging us," Trump explained.
"Ultimately more production at home will mean stronger competition and lower prices for consumers. This will indeed be the golden age of America."
Trump also pointed to the pre-1913 era when the US relied on tariffs rather than income tax. "From 1789 to 1913, we were a tariff-backed nation and the United States was proportionately the wealthiest it has ever been," he said. He blamed the shift to income tax for economic downturns, including the Great Depression. "It would have never happened if they had stayed with the tariff policy."
The president declared that April 2, 2025, "will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again."
A White House aide described the tariff rates as fair and calculated based on trade deficits. "The numbers have been calculated by the council of economic advisers … based on the concept that the trade deficit that we have with any given country is the sum of all trade practices, the sum of all cheating," the official stated. "It’s the most fair thing in the world."
A message to levied countries
Trump criticised foreign tariffs and regulations, referring to Australian restrictions on US beef, EU bans on American poultry, and Japanese taxes on US rice. Australia will see a lower 10 per cent tariff due to its trade surplus with the US, however, other countries face steeper rates: Cambodia 49 per cent, India 26 per cent, Iraq 39 per cent, South Africa 30 per cent, South Korea 25 per cent, Sri Lanka 44 per cent, Switzerland 31 per cent, Taiwan 32 per cent, Thailand 36 per cent, and Vietnam 46 per cent.
Israel, despite receiving significant US military aid, faces a 17 per cent tariff due to its $7.4 billion trade deficit with the US. "Israel steals a lot of intellectual property from, for example, the pharmaceutical manufacturers in this country," a senior administration official said ahead of the announcement.
White House officials confirmed the 10 per cent baseline tariff was designed to prevent evasion of the stricter country-specific levies, citing China’s alleged use of Cambodia and Vietnam for re-exporting goods.
The 78-year-old leader argued that if tariffs and trade barriers caused poverty, every country would be rushing to remove them.
He further added, "To all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be calling to ask for exemptions from these tariffs, I say, ‘Terminate your own tariffs, drop your barriers.’"
Reversing decades of financial stress
Trump justified the decision as necessary to reverse decades of economic harm. "For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," he said, addressing auto workers, steelworkers, and farmers.
"American steel workers, auto workers, farmers and skilled craftsmen — we have a lot of them here with us today — they really suffered gravely," the New York Post quoted Trump.
A tax foundation analysis estimated that a blanket 10 per cent tariff could raise $200 billion annually over the next decade, covering about one-tenth of the federal deficit. However, the analysis cautioned that retaliation from other nations could shrink revenue as economic activity slows.
The president also emphasised his push for congressional Republicans to approve tax reforms, including eliminating federal taxes on tips, overtime, and social security benefits, as well as allowing tax deductions for domestic car loan interest.
Additionally, the White House confirmed new 25 per cent tariffs on non-USMCA-compliant imports from Canada and Mexico, targeting illegal immigration and fentanyl smuggling. A 25 per cent tariff on all foreign-made cars and auto parts is set to take effect at 12.01 am Thursday, affecting 75 per cent of vehicles sold in the US.
This followed Trump’s recent tariff hikes on China for fentanyl smuggling, as well as February’s steel and aluminium duties, which ended previous exemptions for major exporters like Brazil and South Korea.
With Canada, China, and Mexico together accounting for 43 per cent of US imports, analysts are closely watching how the new tariffs will impact trade flows. While China’s "reciprocal" tariff was set at 34 per cent, its interaction with existing, even higher tariffs remains uncertain.
Impact on market
The announcement sent after-hours stock markets tumbling, with S&P 500 futures dropping 1.7 per cent, Nasdaq 100 futures falling 2.5 per cent, and Dow Jones Industrial Average futures slipping 0.7 per cent.
Critics warned that the tariffs could fuel inflation, worsening the 22 per cent price surge seen during Joe Biden's presidency. Though Trump countered that inflation remained low during his first term, despite earlier tariffs, suggesting prices would not necessarily rise under the new policies.
Trump has also hinted at additional tariffs on computer chips, copper, lumber, and pharmaceuticals, sectors notably excluded from the latest round of measures.
Trump, speaking from the Rose Garden, described the move as a "declaration of economic independence," emphasising its importance for the American economy. "This is one of the most important days, in my opinion, in American history. It’s our Declaration of Economic Independence," he said.
“Factories will come roaring back into our country — and you see it happening already. We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers.”
Trump, who has long advocated for these tariffs said, “If you look at my old speeches, where I was young and very handsome … I’d be on a television show, I’d be talking about how we were being ripped off by these countries. I mean, nothing changes very much,” he said.
“It’s such an honor to be finally able to do this.”
LIBERATION DAY RECIPROCAL TARIFFS 🇺🇸 pic.twitter.com/ODckbUWKvO
— The White House (@WhiteHouse) April 2, 2025
‘Golden age of America’
The new tariffs, which will take effect from 12.01 am on Saturday, significantly increase the average US tariff rate, nearly tripling the pre-January baseline. The reciprocal duties, which are tailored based on trade deficits with individual countries, will be implemented from April 9. These include a 20 per cent tariff on EU imports, 24 per cent on Japanese goods, and 17 per cent on Israeli products.
"We will charge them approximately half of what they are and have been charging us," Trump explained.
"Ultimately more production at home will mean stronger competition and lower prices for consumers. This will indeed be the golden age of America."
Trump also pointed to the pre-1913 era when the US relied on tariffs rather than income tax. "From 1789 to 1913, we were a tariff-backed nation and the United States was proportionately the wealthiest it has ever been," he said. He blamed the shift to income tax for economic downturns, including the Great Depression. "It would have never happened if they had stayed with the tariff policy."
The president declared that April 2, 2025, "will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again."
A White House aide described the tariff rates as fair and calculated based on trade deficits. "The numbers have been calculated by the council of economic advisers … based on the concept that the trade deficit that we have with any given country is the sum of all trade practices, the sum of all cheating," the official stated. "It’s the most fair thing in the world."
A message to levied countries
Trump criticised foreign tariffs and regulations, referring to Australian restrictions on US beef, EU bans on American poultry, and Japanese taxes on US rice. Australia will see a lower 10 per cent tariff due to its trade surplus with the US, however, other countries face steeper rates: Cambodia 49 per cent, India 26 per cent, Iraq 39 per cent, South Africa 30 per cent, South Korea 25 per cent, Sri Lanka 44 per cent, Switzerland 31 per cent, Taiwan 32 per cent, Thailand 36 per cent, and Vietnam 46 per cent.
Israel, despite receiving significant US military aid, faces a 17 per cent tariff due to its $7.4 billion trade deficit with the US. "Israel steals a lot of intellectual property from, for example, the pharmaceutical manufacturers in this country," a senior administration official said ahead of the announcement.
White House officials confirmed the 10 per cent baseline tariff was designed to prevent evasion of the stricter country-specific levies, citing China’s alleged use of Cambodia and Vietnam for re-exporting goods.
The 78-year-old leader argued that if tariffs and trade barriers caused poverty, every country would be rushing to remove them.
He further added, "To all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be calling to ask for exemptions from these tariffs, I say, ‘Terminate your own tariffs, drop your barriers.’"
Reversing decades of financial stress
Trump justified the decision as necessary to reverse decades of economic harm. "For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," he said, addressing auto workers, steelworkers, and farmers.
"American steel workers, auto workers, farmers and skilled craftsmen — we have a lot of them here with us today — they really suffered gravely," the New York Post quoted Trump.
A tax foundation analysis estimated that a blanket 10 per cent tariff could raise $200 billion annually over the next decade, covering about one-tenth of the federal deficit. However, the analysis cautioned that retaliation from other nations could shrink revenue as economic activity slows.
The president also emphasised his push for congressional Republicans to approve tax reforms, including eliminating federal taxes on tips, overtime, and social security benefits, as well as allowing tax deductions for domestic car loan interest.
Additionally, the White House confirmed new 25 per cent tariffs on non-USMCA-compliant imports from Canada and Mexico, targeting illegal immigration and fentanyl smuggling. A 25 per cent tariff on all foreign-made cars and auto parts is set to take effect at 12.01 am Thursday, affecting 75 per cent of vehicles sold in the US.
This followed Trump’s recent tariff hikes on China for fentanyl smuggling, as well as February’s steel and aluminium duties, which ended previous exemptions for major exporters like Brazil and South Korea.
With Canada, China, and Mexico together accounting for 43 per cent of US imports, analysts are closely watching how the new tariffs will impact trade flows. While China’s "reciprocal" tariff was set at 34 per cent, its interaction with existing, even higher tariffs remains uncertain.
Impact on market
The announcement sent after-hours stock markets tumbling, with S&P 500 futures dropping 1.7 per cent, Nasdaq 100 futures falling 2.5 per cent, and Dow Jones Industrial Average futures slipping 0.7 per cent.
Critics warned that the tariffs could fuel inflation, worsening the 22 per cent price surge seen during Joe Biden's presidency. Though Trump countered that inflation remained low during his first term, despite earlier tariffs, suggesting prices would not necessarily rise under the new policies.
Trump has also hinted at additional tariffs on computer chips, copper, lumber, and pharmaceuticals, sectors notably excluded from the latest round of measures.
You may also like
PM Modi showcases India's spiritual legacy worldwide
Everything Netflix Pulse's Jack Bannon has been in before Netflix medical drama
Sir Rod Stewart and Penny Lancaster's family rocked by tragic death
AI-Generated Image of Kancha Gachibowli Forest Viral as Real on Social Media
Drivers urged to stop reversing into parking spaces in new warning
