Following his announcement of sweeping tariffs worldwide, US President Donald Trump declared a 10% tariff on all countries, set to take effect from April 5, 2025. Additionally, from April 9, nations with the largest trade deficits with the US will face even higher, individualized tariffs.
Trump Invokes Emergency Economic Powers
The White House released 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.” The document states that Trump is invoking the International Emergency Economic Powers Act of 1977 (IEEPA) to combat large and persistent trade deficits caused by unfair trade practices, currency manipulation, and high value-added taxes (VAT) imposed by other nations.
The fact sheet outlined:
- A 10% tariff on all imports from all countries, effective April 5, 2025 (12:01 AM EDT).
- Higher individualized tariffs on nations with large trade deficits with the US, effective April 9, 2025 (12:01 AM EDT).
- Tariffs will remain in place until Trump determines the trade deficit threat is resolved.
- Trump has the authority to increase tariffs if trading partners retaliate or reduce them if they comply with fair trade policies.
Specific Tariffs on Key Trading Partners
Earlier, Trump had announced tariff hikes on multiple countries, with India facing a 26% tariff. Other notable tariff rates include:
- China: 34%
- European Union: 20%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- India: 26%
- United Kingdom: 10%
- Bangladesh: 37%
- Pakistan: 29%
- Sri Lanka: 44%
- Israel: 17%
25% Tariff on Foreign-Made Automobiles
Trump also announced a 25% tariff on all foreign-made automobiles, stating:
“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 Defends Tariff Policy at ‘Make America Wealthy Again’ Event
Speaking at the Make America Wealthy Again event, Trump criticized foreign tariff policies, stating:
“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 tariffs mark one of the most aggressive trade policies in US history, with major implications for global trade relations and economic stability.