Trump Imposes Reciprocal Tariffs in National Trade Emergency

Washington, D.C - President Donald Trump signed an executive order on Wednesday implementing a system of reciprocal tariffs on imports from countries worldwide, declaring the United States' persistent trade deficits a "national emergency" that threatens economic and national security.

According to documents released by the White House, the order establishes a baseline 10% tariff on all imports effective April 5. 

Higher country-specific duties, ranging from 10% to 49%, will take effect on April 9.

"This is our Declaration of Economic Independence," Trump said during a signing ceremony at the White House. "For decades, our country has been looted, pillaged, and plundered by nations near and far, both friend and foe alike."

The executive order characterizes the U.S. trade deficit, which reached $1.2 trillion in 2024, as "an unusual and extraordinary threat" requiring immediate action under emergency powers. 

It states that asymmetries in global trade relationships have contributed to the "atrophy of domestic production capacity" and compromised military readiness.

According to figures presented at the ceremony, under the plan, China will face a 34% tariff, the European Union 20%, Vietnam 46%, Taiwan 32%, and Japan 24%. 

Trump described these rates as approximately half the combined tariff rates and trade barriers these countries impose on American goods.

"We charge 2.8% for so many things that other countries are charging 200%, 300%, and 400% for," Trump said, citing examples of disparities in automobile and motorcycle tariffs.

The executive order specifies exclusions for products already subject to Section 232 tariffs on steel, aluminum, and automobiles. 

It also exempts critical minerals, energy products, semiconductors, pharmaceuticals, and lumber.

Products with at least 20% U.S. content will receive reduced tariff rates, and goods qualifying under the USMCA trade agreement with Mexico and Canada will remain duty-free.

Commerce Secretary Howard Lutnick attended the signing ceremony along with Vice President J.D. Vance, House Speaker Mike Johnson, and representatives from the manufacturing sector, including automotive workers.

The order cites data showing U.S. manufacturing output falling from 28.4% of global manufacturing in 2001 to 17.4% in 2023, with approximately 5 million manufacturing jobs lost between 1997 and 2024.

"Jobs and factories will come roaring back into our country, and you see it happening already," Trump said, claiming several major companies had announced investment plans in response to the anticipated policy. 

He cited commitments from Apple, TSMC, Nvidia, and various automakers totaling approximately $6 trillion.

The executive order authorizes the U.S. Trade Representative and Commerce Secretary to recommend additional actions if the initial tariffs prove ineffective. 

It permits retaliatory measures against countries that respond with their duties on U.S. exports.

Trump also called on Congress to approve a tax incentive for consumers who purchase American-made vehicles, saying buyers would receive an interest rate deduction on car loans for domestically manufactured automobiles.

The tariff structure resulted from the administration's earlier this year investigations into the causes of U.S. trade imbalances, following presidential memoranda signed in January and February.