#TrumpTariffs President Trump's April 2, 2025 Tariff Announcement: Key Details and Implications
On April 2, 2025, President Donald Trump announced a 10% baseline tariff on all imports and higher "reciprocal tariffs" on key trading partners. Dubbed "Liberation Day," the move aims to boost domestic manufacturing but risks global trade conflicts.
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1. Tariff Breakdown
Baseline Tariff: 10% on all imports starting April 5, 2025.
Reciprocal Tariffs: Higher rates from April 9, 2025, targeting key nations:
China: 54% total.
EU: 20%.
Japan: 24%.
Vietnam: 46%.
India: 27%.
South Korea: 25%.
Exemptions: Steel, autos, pharmaceuticals remain under prior tariffs.
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2. Justification & Legal Basis
IEEPA Declaration: Trump cites a $1.2 trillion trade deficit as a national security threat.
Trade Disparities: U.S. tariffs (3.3%) vs. China (7.5%), India (17%), EU (5%).
Goals: Reshore jobs, counter currency manipulation, reduce supply chain reliance.
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3. Economic Impact
Inflation: Tariffs may raise U.S. inflation by 1–1.5%, costing households $2,700–$3,400.
GDP Risks: Projected losses:
Poland: 0.4% GDP loss (~$2.64B).
Thailand: 1% growth reduction.
EU: Possible €750B loss.
Recession?: U.S. GDP could shrink 10% in Q2 2025.
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4. Global Response
China & EU: Threaten countermeasures.
Germany: Calls tariffs a "catastrophe."
UK & Canada: Warn of retaliation.
NATO Strains: Allies question timing amid defense budget tensions.
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5. Controversies
Opaque Calculations: White House hasn't clarified reciprocal tariff rates.
Supply Chain Woes: Higher import costs may offset job gains.
Historical Parallels: Critics compare to 1930s protectionism.
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Conclusion
Trump’s tariffs shift toward protectionism, aiming to fix trade imbalances but sparking economic uncertainty. The outcome depends on trade partners' reactions. Stay updated via CNBC & Reuters.