President Donald Trump has declared a series of broad tariffs against trade partners, dubbing April 2 as “Liberation Day” and asserting that these measures would bring back industry and jobs to the United States by combatting what he perceives as unfair duties imposed by other countries on American goods.
Trump’s recent tariffs, announced on Wednesday, along with similar actions taken since he resumed office on January 20, represent the most significant escalation in US tariffs in nearly a century.
Several nations have indicated their intention to retaliate, raising the possibility of a global trade conflict characterized by tit-for-tat tariffs.
Key points from the latest round of US tariff announcements are as follows:
Trump has essentially dismantled the global trading system that has been in place for over 75 years, which was founded on the idea that promoting free trade would ultimately benefit all countries.
The Trump administration has imposed a new baseline tariff of 10 percent on imports from all countries, even those with lower tariffs on American products. For countries accused of obstructing US goods, the penalties are more severe, with higher, retaliatory tariffs.
Rather than matching the EU’s 39 percent tariff on US goods, for example, the US will impose a 20 percent duty. Additionally, China, which already faces a 20 percent tariff, will now have an additional 34 percent levy, totaling 54 percent.
The administration argues that other countries impose significantly higher tariffs on the US. Despite this, the average US tariff, based on the goods traded, is only 2.2 percent, compared to the EU’s average of 2.7 percent, China’s 3 percent, and India’s much higher 12 percent.
These figures do not include recent tariffs imposed by the Trump administration or duties under free trade agreements like the US-Mexico-Canada Agreement.
Trump invoked the International Emergency Economic Powers Act of 1977 to announce a 10 percent tariff on all countries, set to take effect on April 5.
Approximately 60 countries will face personalized tariffs, calculated to be roughly half of the tariffs and barriers that the Trump administration claims they impose on the US.
These tariffs will come into effect on April 9 at 00:01am ET.
The reciprocal tariffs will exclude specific goods like copper, pharmaceuticals, semiconductors, lumber, gold, energy, and certain minerals not available in the US, according to a White House fact sheet.
A 25 percent tariff will be placed on all foreign-made automobiles, effective midnight on April 3.
Multiple countries and companies have pledged to retaliate against Trump’s tariffs. China, the EU, Japan, and Volkswagen are among those preparing countermeasures.
US business groups are bracing for the impact, with the National Association of Manufacturers expressing concern over the implications for manufacturers operating on tight margins. Biaya tinggi dari tarif baru mengancam investasi, pekerjaan, rantai pasokan, dan, pada gilirannya, kemampuan Amerika untuk bersaing dengan negara-negara lain dan memimpin sebagai kekuatan manufaktur terkemuka,” kata Timmons dalam sebuah pernyataan.
Michelle Korsmo, presiden dan CEO Asosiasi Restoran Nasional, mengatakan pemilik restoran khawatir bahwa tarif akan meningkatkan biaya dan menyebabkan harga yang lebih tinggi untuk pelanggan.
“Operator restoran tahu konsumen sangat sensitif terhadap biaya dan telah menjaga kenaikan harga menu hingga 30 persen, sementara biaya makanan mereka telah naik 40 persen dalam lima tahun terakhir,” kata Korsmo dalam sebuah pernyataan.
Scott Paul, presiden Aliansi Manufaktur Amerika, menawarkan penilaian yang lebih positif, mengatakan tarif tersebut menempatkan produsen dan pekerja AS di posisi pertama.
“Para pria dan wanita pekerja keras ini telah melihat perdagangan yang tidak adil merenggut tanah di bawah kaki mereka selama beberapa dekade. Mereka layak mendapat kesempatan untuk berjuang,” kata Paul dalam sebuah pernyataan.