The proposal introduces a minimum 10% tariff on all imports, aligning with a promise Trump made during his 2024 campaign. However, goods from countries deemed "worst offenders" by the White House, including the European Union, China, Vietnam, and Lesotho, will face significantly higher tariffs. Trump framed these increased duties as retribution for what he described as unfair trade practices.
This move represents a stark break from decades of US policy that championed free trade. Experts warned that these new tariffs could lead to higher prices for American consumers and slow down both domestic and global economic growth.
The White House announced that the 10% tariffs would take effect on April 5, with the higher rates rolling out on April 9.
Speaking in the Rose Garden with US flags as a backdrop, Trump declared, "It's our declaration of economic independence." He argued that for years, the US had been "looted, pillaged, raped and plundered by nations near and far, both friend and foe alike." Trump framed the announcement as a victory for the American worker, calling it "one of the most important days in American history."
During his 2024 campaign, Trump emphasized the importance of new tariffs to fund government programs and stimulate American manufacturing, envisioning an era of renewed prosperity.
The tariff changes come on the heels of previous actions that imposed higher duties on imports from China, foreign cars, steel, aluminum, and certain goods from Mexico and Canada. However, these new taxes will not affect Mexico and Canada, two of the US’s closest trade partners.
Under the new plan, the UK will face a 10% tariff, while the EU will see a 20% tax on imports. Goods from China will incur a 34% tariff, Japan will face a 24% levy, and India will be taxed at 26%. Smaller nations will experience some of the highest rates, with Lesotho facing a staggering 50%, and Vietnam and Cambodia enduring tariffs of 46% and 49%, respectively.
These changes will bring US import duties to levels unseen in decades, reshaping international trade dynamics. Additionally, Trump confirmed that the 25% tax on foreign-made cars, first announced last week, will go into effect at midnight.
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