Trump on Wednesday announced a sweeping new trade policy that imposes a 10% baseline tariff on all imports into the United States and significantly higher rates on countries running trade surpluses with the U.S., triggering global concerns over a potential trade war and economic instability.
Standing in the White House Rose Garden, Trump declared a national economic emergency to justify the action, bypassing Congress by invoking the 1977 International Emergency Economic Powers Act. The administration says the new tariffs are part of a broader strategy to restore what Trump called “economic fairness” and reverse decades of “unbalanced trade.”
Trump presented a chart showing country-specific rates: 34% on imports from China, 32% from Taiwan, 25% from South Korea, 24% from Japan, and 20% from the European Union. He argued that U.S. allies and adversaries alike have long imposed unfair trade barriers and tariffs on American products, creating what he described as a $1.2 trillion trade imbalance.
“Our country has been looted, pillaged, and plundered for more than 50 years,” Trump said. “Those days are over. This is how we take back control of our economy.”
The administration claims the new tariffs will generate hundreds of billions of dollars in annual revenue and incentivize manufacturers to bring jobs back to the U.S. Trump also framed the policy as a corrective measure to force foreign governments to lower their own trade barriers.
In addition to the 10% baseline tariff, Trump’s plan includes targeted levies across multiple sectors. That includes 25% tariffs on automobile imports, new tariffs on pharmaceuticals, computer chips, copper, lumber, and expanded trade penalties on countries tied to oil imports from Venezuela.
White House officials, speaking anonymously before the announcement, explained that the country-specific rates were calculated based on trade deficits and then halved to avoid overly abrupt disruptions. However, analysts warn that even with that adjustment, the impact could be severe.
The announcement sent ripples through global markets, with major U.S. stock indexes closing mixed amid investor uncertainty. Economists and business leaders expressed concern about the tariffs’ potential to drive up consumer prices on cars, electronics, clothing, and everyday goods.
Democratic lawmakers blasted the move. Rep. Suzan DelBene (D-Wash.), chair of the Democratic Congressional Campaign Committee, called the action “an unauthorized tax hike on American families” and criticized Trump for bypassing congressional approval.
“This is part of the chaos and dysfunction we’ve come to expect,” DelBene said. “President Trump promised to lower costs. Instead, he’s raising prices and risking a global trade war.”
The European Union and Canada, both of which have previously been hit by U.S. tariffs, indicated they are prepared to respond. European Commission President Ursula von der Leyen warned that while the EU seeks cooperation, it would “not hesitate to retaliate” if American tariffs target core European industries.
Italian Prime Minister Giorgia Meloni urged de-escalation, stating that a trade conflict between the EU and U.S. would have “heavy consequences” for both economies.
Despite the backlash, Republican leaders largely stood by the president. House Speaker Mike Johnson (R-La.) called the move bold, but necessary.
“It may be rocky in the beginning,” Johnson said, “but I believe these steps will benefit American workers in the long run.”
Meanwhile, manufacturers and importers remain in limbo. Ray Sparnaay, general manager of a Canadian tool and die firm, said the uncertainty since Trump’s re-election has slowed business activity.
“There’s going to be tariffs implemented. We just don’t know which ones, how deep, or when,” Sparnaay said. “That’s one of the biggest problems we’ve faced—this cloud of uncertainty is holding up deals and investment.”
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