Trump imposes reciprocal tariffs to counter ‘trade imbalances’
US President Donald Trump has declared a national emergency to counter economic threats posed by foreign trade practices, citing concerns over trade deficits and national security. The order imposes responsive tariffs aimed at strengthening the international economic position of the US.
The White House announced the move as part of an effort to bolster domestic industries, reduce dependence on foreign adversaries, and safeguard the country’s economic sovereignty.
Under the emergency declaration, the Trump administration will impose a 10% tariff on all imported goods starting April 5, 2025. Additionally, higher tariffs will be applied to nations with large trade deficits with the United States starting April 9, 2025.
According to a fact sheet published by the White House, these 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.”
Exemptions and special provisions
Certain goods will however be exempt from the new reciprocal tariff measures. These goods and products include; steel and aluminium products, automobiles, and auto parts already covered under Section 232 tariffs. As well as pharmaceuticals, semiconductors, lumber, and copper due to their critical role in supply chains.
Additionally, energy products and certain minerals essential to US industries that are not produced domestically will be exempt from the reciprocal tariff.
The White House argues that persistent trade deficits have led to a decline in US manufacturing, weakened critical supply chains, and increased economic reliance on foreign nations. By imposing tariffs, the administration aims to “adjust for the unfairness of ongoing international trade practices, balance our chronic goods trade deficit, provide an incentive for re-shoring production to the United States”
"April 2, 2025, will be remembered as the day American industry was reborn, the day America’s destiny was reclaimed and the day we began to make America wealthy again," President Donald Trump said in his Wednesday ‘Liberation Day’ address.
The president continued and stated, “In a few moments I will sign a historic executive order instituting reciprocal tariffs on countries throughout the world, reciprocal, that means they do it to us and we do it to them – very simple, can't get any simpler than that.”
The result, Trump asserted, would be a revitalised industrial base, increased competition, and ultimately, lower prices for American consumers.
Trump's address starts at 55:25
