On Wednesday, President Trump declared extensive worldwide tariffs—a bold yet perilous step aimed at bringing more manufacturing jobs back to the U.S., though analysts cautioned this might disrupt the international economic system.
During his address in the Rose Garden, Trump announced that the US would start imposing a flat import tariff of 10% on products coming from every foreign nation. He mentioned that numerous nations which impose unfair taxes on American exports will be subject to extra duties, adding an additional 44% for Chinese imports, 20% for those from the EU, and 26% for goods from India.
The tariffs unveiled by Trump raise U.S. import duties on overseas products to heights last witnessed during World War II, sparking concerns about a potential worldwide trade conflict.
Trump said the new tariffs represent a turning point globally and for the United States. He said that Wednesday, which he dubbed "Liberation Day," would "forever be remembered as the day that American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again."
The president made his comments shortly after the stock markets had ended their day. However, U.S. futures dropped sharply right after Trump stepped away from the podium, hinting at possible future instability as countries introduce new tariffs against one another.
"The nation and its taxpaying citizens have been exploited for over five decades, but that will not occur again. It won’t happen,” Trump stated. “In my view, this is among the most significant days in American history. This marks our declaration of economic sovereignty.”
He charged countries everywhere — whether allies or adversaries — with having "plundered, ransacked, assaulted, and robbed" the United States.
Trump frequently mentioned "reciprocal tariffs," yet certain duties aren’t fully reciprocal. For instance, according to statements from the White House, when another nation levies a 50% tax on American goods, it faces a 25% duty in return. However, these figures shared by the White House couldn't be promptly confirmed.
The recently introduced tariffs come on top of the 25% tax on all imported vehicles that Trump declared earlier this week, which was set to begin on Thursday morning.
The specifics regarding the tariffs were shrouded in secrecy up until the final moments, according to White House Press Secretary Karoline Leavitt. She stated that President Trump met with his economic advisers all the way through Tuesday afternoon to iron out the finer points.
Since his campaign trail, Trump has been promoting tariffs, asserting that foreign nations have been "taking advantage" of the U.S. for years.
However, based on a Marquette Law School survey published on Wednesday, a majority of U.S. adults—58%—believe that tariffs will have an adverse effect on the nation’s overall economy. There is a notable difference among political affiliations: 89% of Democrats and 58% of independent voters say these trade barriers will harm the economy, whereas 52% of Republicans argue they will be beneficial.
'Just one harvest short of financial ruin'
During a rambling address covering topics such as Ukraine, Russia, issues with the press, and the Middle East, Trump frequently faulted his earlier rival, ex-President Biden, for failing to safeguard America’s economic interests.
I hold previous presidents and erstwhile leaders responsible because they failed to fulfill their duties," Trump stated. "They allowed this to occur.
Stating that the tariffs would bring about a "Golden Age of America," Trump highlighted that these measures would foster greater competitiveness and reduce costs for consumers. Addressing an audience gathered in the Rose Garden—a common backdrop for significant presidential economic addresses—the president was joined by several United Auto Workers union members wearing hard hats.
Sean Fain, who leads the union, stated on CBS News Sunday that "tariffs serve as a tool within our toolkit" aimed at bringing more businesses back to the U.S. Fain and his members supported Biden during last year's elections following his historic backing of striking auto workers.
Trump threw a MAGA hat to the autoworkers in the crowd and, gesturing toward them, said they would benefit from manufacturing “roaring back into our country.”
"They aren’t supporting Democrats now," Trump stated, with the audience applauding enthusiastically.
Despite this, many leading Republicans were present at the address, whereas some lawmakers on Capitol Hill chose not to attend, cautioning the president about severe repercussions for the farmers and manufacturers within their constituencies, who might quickly find themselves unemployed due to the administration’s latest policies.
Anybody suggesting that some discomfort might occur before everything aligns perfectly should speak with my farmers, who are just one harvest away from financial ruin," said Republican Senator Thom Tillis of North Carolina to journalists on Tuesday. "We must ensure our approach is precise when implementing changes; otherwise, we risk causing harm that cannot be undone for our farming community.
Closest partners affected
On Wednesday, it seemed like both Canada and Mexico emerged victorious as they managed to avoid the specific-country tariffs imposed by Trump. However, these nations will still face various tariffs resulting from earlier measures.
Trump initiated his presidential term by imposing levies on imported items from Canada and Mexico, claiming these nations were contributing to the fentanyl epidemic in the U.S. He later suspended and subsequently reimposed the duties. However, White House representatives stated on Wednesday that although Canada would be excluded from this latest proclamation, specific Canadian products will still face continued tariffs—25% for some categories and 10% for others.
"His aim is to crush us so that America can control us," stated Canadian Prime Minister Mark Carney. in a video Wednesday That scenario will never occur. In regards to these new tariffs, we intend to combat them, safeguard ourselves, and construct alternative solutions.
World leaders have been tense for weeks leading up to Trump’s declaration. This unease has been most pronounced in Mexico, which trades more with the U.S. than any other country does.
In the previous year, Mexico exported over $500 billion worth of products such as vehicles, computers, oil, and natural gas to its northern trading partner. Concurrently, it brought in $334 billion worth of goods manufactured in the United States.
Mexican companies have subsequently refrained from making new investments.
The Mexican President, Claudia Sheinbaum, has adopted a careful strategy aimed at appeasing Trump. In contrast to Canada’s actions, she refrained from imposing tariffs on products coming from the U.S., even as Trump temporarily put tariffs on Mexican goods.
On Wednesday, prior to Trump’s statement, Sheinbaum mentioned that Mexico planned to react on Thursday with "a complete plan" aimed at addressing the newly introduced tariffs. However, she implied that Mexico wouldn’t reciprocate with its own set of import taxes. "This isn't about saying 'you tax my goods, so I'll do the same for yours,'" she stated.
At home, Democrats have continually criticized President Trump’s tariff plans as detrimental to American citizens, warning that these individuals will probably encounter increased costs for commonly imported products. Representative Robert Garcia from Long Beach (D) labeled the tariffs "disastrous for the economy," particularly impacting his constituency, which heavily depends on regular trade flowing through the Ports of Long Beach and Los Angeles. According to Garcia, during discussions with port officials, shipping corporations, and retail representatives, not one individual viewed this measure favorably.
"This will affect regular American citizens, causing significant disruption, particularly in urban areas such as Los Angeles and Long Beach," according to Garcia.
Pinho and Wilner filed their report from Washington, while Linthicam reported from Mexico City.
This tale initially surfaced in Los Angeles Times .
