Trump announces 10% baseline tariff
Higher reciprocal tariffs on many US trading partners
Sweeping duties would erect barriers around US economy
By Andrea Shalal and David Lawder , Reuters
President Donald Trump said that he would impose a 10 percent baseline tariff on all imports to the United States and higher duties on dozens of the country's biggest trading partners, deepening a trade war that he kicked off on his return to the White House.
The sweeping duties would erect new barriers around the world's largest consumer economy, reversing decades of trade liberalisation that have shaped the global order. Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine. U.S. stock futures sank following his announcement.
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"It's our declaration of independence," Trump said at an event in the White House Rose Garden on Wednesday (local time).
US President Donald Trump holds a chart titled 'Reciprocal Tariffs' during an event at the White House in Washington, DC, on 2 April 2025.
US President Donald Trump holds a chart titled 'Reciprocal Tariffs' during an event at the White House in Washington, DC, on 2 April 2025. Photo: AFP / Brendan Smialowski
Trump displayed a poster that listed reciprocal tariffs, including 34 percent on China and 20 percent on the European Union, as a response to duties put on U.S. goods.
A White House official, speaking on condition of anonymity, said those penalties will take effect on April 9 and will apply to about 60 countries in all.
Canada and Mexico, the two largest US trading partners, already face 25 percent tariffs on many goods.
The baseline 10 percent tariff will take effect on Saturday, the official said.
US President Donald Trump holds a chart titled 'Reciprocal Tariffs' during an event at the White House in Washington, DC, on 2 April 2025.
US President Donald Trump holds a chart titled 'Reciprocal Tariffs' during an event at the White House in Washington, DC, on 2 April 2025. Photo: AFP / Brendan Smialowski
Following his remarks, Trump signed an order to remove a "de minimis" tariff exemption on low-cost products. Trump is also planning other tariffs targeting semiconductors, pharmaceuticals, and potentially critical minerals, the official said.
Trump's barrage of penalties has rattled financial markets and businesses that have relied on trading arrangements that have been in place since the middle of last century.
The administration has said the new tariffs will take effect immediately after Trump announces them, though it has not yet published the official notice required for enforcement.
A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City, on April 2, 2025. (Photo by CHARLY TRIBALLEAU / AFP)
Financial markets were volatile as investors awaited Trump's announcement. US stocks have erased nearly US$5 trillion of value since February. Photo: AFP / Charly Triballeau
The administration, however, did publish an official notice that a separate set of tariffs on auto imports that Trump announced last week will take effect starting on 3 April.
Trump has already imposed 20 percent duties on all imports from China and 25 percent duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products.
His advisers say the tariffs will return strategically vital manufacturing capabilities to the United States.
Steel welding or welder industrial in the factory with smoke from welding job.
Harm will happen to health of welder smoke inhalation from steel welding.
Trump has already imposed 20 percent duties on all imports from China and 25 percent duties on steel and aluminum. Photo: 123RF
Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars. Businesses have complained that Trump's barrage of threats has made it difficult to plan their operations.
Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise. Financial markets were volatile as investors awaited Trump's announcement.
US stocks have erased nearly US$5 trillion of value since February.
- Reuters