Key Points
Trump invokes emergency powers to impose universal 10% tariff
Individualized higher tariffs for countries with largest trade deficits
Tariff rates range from 10% to 46% by country
Automotive sector faces 25% import tariff
Additionally, starting April 9, countries with the largest trade deficits with the US will face higher, individualised tariffs.
The White House in a fact sheet titled 'President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security' said, "President Trump is invoking his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to address the national emergency posed by the large and persistent trade deficit that is driven by the absence of reciprocity in our trade relationships and other harmful policies like currency manipulation and exorbitant value-added taxes (VAT) perpetuated by other countries."
It added, "Using his IEEPA authority, President Trump will impose a 10% tariff on all countries. This will take effect April 5, 2025 at 12:01 am EDT."
The fact sheet further stated, "President Trump will impose an individualized reciprocal higher tariff on the countries with which the United States has the largest trade deficits. All other countries will continue to be subject to the original 10% tariff baseline. This will take effect April 9, 2025 at 12:01 am EDT."
Tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.
The fact sheet further stated, "Today's IEEPA Order also contains modification authority, allowing President Trump to increase the tariff if trading partners retaliate or decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters."
Notably, Trump announced new import tariffs on Wednesday (local time), outlining the rates to be imposed on countries around the world, with India facing a 26 percent tariff.
At the Make America Wealthy Again Event, Trump said, "The United States charges other countries only a 2.4 tariff on motorcycles. Meanwhile, Thailand and others are charging much higher prices like 60%, India charges 70%, Vietnam charges 75% and others are even higher than that."
The US President further said that a 25 per cent tariff would be imposed on all foreign-made automobiles."Such horrendous imbalances have devastated our industrial base and put our national security at risk. I don't blame these other countries at all for this calamity. I blame former presidents and past leaders who weren't doing their job...Effective at midnight, we will impose a 25% tariff on all foreign-made automobiles," Trump said.
The import tariffs on other major countries are China (34 per cent), European Union (20 per cent), Vietnam (46 per cent), Taiwan (32 per cent), Japan (24 per cent), India (26 per cent), United Kingdom (10 per cent), Bangladesh (37 per cent), Pakistan (29 per cent), Sri Lanka (44 per cent), Israel (17 per cent).
