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Trump Announces Reciprocal Tariffs on U.S. Trading Partners

In a significant shift in U.S. trade policy, President Trump declared on Wednesday the implementation of what he termed “reciprocal tariffs” affecting numerous international trading partners. This decision has the potential to reshape America’s foreign relations and affect global trade dynamics.

Starting April 5, imports into the United States will incur a base tariff of 10%. Following this, on April 9, approximately 90 countries that currently impose tariffs on American goods will be subjected to additional reciprocal tariffs.

For instance, imported products from countries such as Egypt, the United Kingdom, Ecuador, and the United Arab Emirates will face a 10% tariff. Imports from the European Union will be impacted by a 20% tariff, while Taiwanese products will see a 32% tariff, Chinese imports will be assessed a 34% tax, and Cambodia will bear the highest reciprocal tariff at 49%.

The only exceptions to these new tariffs are Mexico and Canada. However, these countries still confront 25% tariffs under separate initiatives aimed at aluminum and steel, which were instituted in February, along with impending tariffs on vehicles effective Thursday.

During an interview on Fox News, Treasury Secretary Scott Bessent confirmed that goods from Mexico and Canada that fall under the U.S.-Mexico-Canada Agreement would remain free from reciprocal tariffs for the time being.

Economists have voiced concerns that these broad tariffs could disproportionately impact low-income Americans and potentially trigger an economic downturn. In a speech delivered from the White House’s Rose Garden, which he dubbed “Liberation Day,” President Trump portrayed a grim scenario where the U.S. has been exploited, even by its allies.

“Trade deficits are no longer merely an economic problem; they are a national emergency that threatens our security and our very way of life,” he asserted.

The international response to Trump’s announcement has been mixed, with reactions ranging from subdued to sharply critical.

China’s commerce ministry, in a statement to Agence France-Presse, called for an immediate cancellation of the tariffs. A White House official indicated to CBS News that the new tariffs are cumulative, meaning that the existing 20% tariffs on Chinese goods would remain in addition to the newly imposed 34% retaliatory tariffs.

“China urges the U.S. to immediately cancel unilateral tariff measures and properly resolve differences with trade partners through equal dialogue,” the ministry remarked, warning that these actions could jeopardize global economic stability.

Swedish Prime Minister Ulf Kristersson expressed regret regarding the U.S. stance, noting that “free enterprise and competition have laid the foundations of the West’s success,” and he voiced a hope to mitigate the impact of the U.S. tariffs.

Italy’s Prime Minister Giorgia Meloni, a Trump ally, criticized the tariffs on the European Union as “wrong” and contrary to all parties’ interests, expressing an intent to negotiate a resolution to prevent a trade war that could undermine the West’s position against other global players.

Sok Eysan, a spokesperson for the Cambodian People’s Party, stated that as a smaller nation, Cambodia simply seeks to survive, suggesting that the U.S. should prioritize human rights and democratic values over punitive measures against smaller countries.

Irish Prime Minister Micheál Martin took to social media to express his disappointment over the decision to impose 20% tariffs on goods from the European Union, emphasizing that such tariffs are detrimental to all involved parties. Martin highlighted the priority of safeguarding Irish jobs and the economy amid this new landscape of tariffs.

Deputy Prime Minister Simon Harris articulated the significant challenges posed to Irish exporters by the broad tariffs, foreseeing lasting economic repercussions.

Beyond Europe, Japanese Trade Minister Yoji Muto described the 24% tariff on Japanese exports as “extremely regrettable” and reiterated calls for the U.S. to reconsider its unilateral approach to tariffs.

In a succinct response, Swiss President Karin Keller-Sutter noted that Switzerland would swiftly evaluate its next steps in light of the new tariffs.

Source
www.cbsnews.com