Trump Announces Reciprocal Tariffs on Dozens of Countries

Living up to his word to set right the trade deficits and imbalances with more than 60 countries, the US President Donald Trump on Wednesday announced reciprocal tariffs of 54% on imports from China and 20% on goods from the European Union.

He also announced imposition of similar measures against Vietnam (46%), India (26%), Indonesia (32%), Cambodia (49%), South Africa (30%), Malaysia (24%), South Korea (25%), Thailand (36%), Taiwan (32%), Brazil (18%), Indonesia (30%), Switzerland (31%), Japan (24%), Ukraine (10%) and other countries.

In the Middle East the US government has imposed a minimum baseline reciprocal tariffs on the UAE, Saudi Arabia, Egypt, and Morocco (10% each), 20% on Jordan, and 28% on Tunisia. However, Russia did not figure in the list as the country was already facing sanctions for its war in Ukraine.

According to media reports, the White House said that the US would start charging the 10% tariffs on 5 April, with the higher duties for certain nations starting on 9 April. These tariffs are likely to have a tremendous impact on the global economy. The US has imported approximately $3.3 trillion worth of goods in 2024.

The US President said that he has declared a national emergency arising from conditions reflected in large and persistent annual US goods trade deficits, which have grown by over 40% in the past five years alone, reaching $1.2 trillion in 2024. 

“This trade deficit reflects asymmetries in trade relationships that have contributed to the atrophy of domestic production capacity, especially that of the US manufacturing and defence-industrial base.  These asymmetries also impact U.S. producers’ ability to export and, consequentially, their incentive to produce,” he said.

Speaking to reporters, Trump said that for nations that treat US badly, the government will calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating and will charge them approximately half of what they are, and have been charging the US.

Manufacturing Jobs to Return

He also said that manufacturing jobs would return to the US as a result of his decision, but his policies could cause a sudden economic slowdown, as consumers and businesses could face sharp price increases for cars, clothing, and other goods.

According to him, the decline of US manufacturing capacity has threatened the country’s economy in other ways, including through the loss of manufacturing jobs. 

“From 1997 to 2024, the US lost around 5 million manufacturing jobs and experienced one of the largest drops in manufacturing employment in history. Furthermore, many manufacturing job losses were concentrated in specific geographical areas. In these areas, the loss of manufacturing jobs contributed to the decline in rates of family formation and to the rise of other social trends, like the abuse of opioids, that have imposed profound costs on the US economy,” he said.