President Donald Trump has unveiled an extensive new tariff regime, imposing a 10% baseline tax on imports from most countries, with significantly higher levies for those running trade surpluses with the United States. However, Canada and Mexico have been notably left off the list for additional tariffs, with the White House citing existing agreements as the reason.
Donald Trump announces reciprocal tariffs - follow live updates
Speaking at the White House, Trump presented a chart displaying the new tariff rates: 34% on Chinese imports, 20% on goods from the European Union, 25% on South Korea, 24% on Japan, and 32% on Taiwan. The president framed his move as a response to what he described as decades of economic exploitation.
“Our country has been looted, pillaged, raped, plundered by nations near and far, both friend and foe alike,” Trump declared. “They rip us off, it’s so pathetic. Now, we’re going to charge.”
The White House confirmed that the new tariffs will not apply to Canada and Mexico due to existing orders under the International Emergency Economic Powers Act (IEEPA) related to fentanyl and migration. Under these measures, USMCA-compliant goods from both countries will continue to see a 0% tariff, while non-USMCA compliant goods will face a 25% tariff and non-compliant energy and potash imports will be taxed at 10%. If the IEEPA orders are lifted, a 12% tariff would apply to non-compliant goods.
Despite Canada’s exemption from the baseline 10% tariff, Trump reiterated his long-standing grievances against the country, falsely claiming that the US subsidises Canada by $200 billion annually. “You gotta work for yourselves,” he said. “We subsidize a lot of countries, keep them going and keep them in business.”
Trump has also announced a separate 25% tariff on all foreign-made automobiles, a move that could have significant consequences for the Canadian auto industry. However, the White House clarified that this will only apply to the non-US content within Canadian-assembled vehicles.
The administration has defended the sweeping tariffs as necessary to address the US trade deficit, which stood at $1.2 trillion last year. Senior officials claimed the new measures would generate hundreds of billions in annual revenue and compel other countries to lower their own trade barriers.
Trump’s actions have sparked concerns of retaliatory measures from long-standing trading partners. The European Union, for instance, has warned of countermeasures similar to its response to Trump’s previous steel and aluminum tariffs. European Commission President Ursula von der Leyen said, “We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.”
Economists and analysts warn that Trump’s aggressive tariff policy could lead to higher prices for American consumers and businesses. Critics, including Democrats in Congress, have accused him of imposing a de facto tax on American families without legislative approval. “This is a massive tax increase on American families, and it’s without a vote in Congress,” said Rep. Suzan DelBene, D-Wash.
Donald Trump announces reciprocal tariffs - follow live updates
Speaking at the White House, Trump presented a chart displaying the new tariff rates: 34% on Chinese imports, 20% on goods from the European Union, 25% on South Korea, 24% on Japan, and 32% on Taiwan. The president framed his move as a response to what he described as decades of economic exploitation.
“Our country has been looted, pillaged, raped, plundered by nations near and far, both friend and foe alike,” Trump declared. “They rip us off, it’s so pathetic. Now, we’re going to charge.”
The White House confirmed that the new tariffs will not apply to Canada and Mexico due to existing orders under the International Emergency Economic Powers Act (IEEPA) related to fentanyl and migration. Under these measures, USMCA-compliant goods from both countries will continue to see a 0% tariff, while non-USMCA compliant goods will face a 25% tariff and non-compliant energy and potash imports will be taxed at 10%. If the IEEPA orders are lifted, a 12% tariff would apply to non-compliant goods.
Despite Canada’s exemption from the baseline 10% tariff, Trump reiterated his long-standing grievances against the country, falsely claiming that the US subsidises Canada by $200 billion annually. “You gotta work for yourselves,” he said. “We subsidize a lot of countries, keep them going and keep them in business.”
Trump has also announced a separate 25% tariff on all foreign-made automobiles, a move that could have significant consequences for the Canadian auto industry. However, the White House clarified that this will only apply to the non-US content within Canadian-assembled vehicles.
The administration has defended the sweeping tariffs as necessary to address the US trade deficit, which stood at $1.2 trillion last year. Senior officials claimed the new measures would generate hundreds of billions in annual revenue and compel other countries to lower their own trade barriers.
Trump’s actions have sparked concerns of retaliatory measures from long-standing trading partners. The European Union, for instance, has warned of countermeasures similar to its response to Trump’s previous steel and aluminum tariffs. European Commission President Ursula von der Leyen said, “We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.”
Economists and analysts warn that Trump’s aggressive tariff policy could lead to higher prices for American consumers and businesses. Critics, including Democrats in Congress, have accused him of imposing a de facto tax on American families without legislative approval. “This is a massive tax increase on American families, and it’s without a vote in Congress,” said Rep. Suzan DelBene, D-Wash.
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