April 03, (THEWILL) – In a sweeping move aimed at reshaping global trade dynamics, U.S. President Donald Trump has announced a 10% tariff on imports from all countries, with additional levies targeting about 60 nations deemed the “worst offenders” in trade imbalance.
Citing economic security concerns, the White House described the decision as a national emergency response to what it called unfair treatment of the United States in global trade. The move, which takes effect on April 5, 2025, is anchored on the International Emergency Economic Powers Act of 1977 (IEEPA), allowing the president to take action against economic threats.
A statement from the White House justified the tariffs as a corrective measure against countries engaged in currency manipulation, excessive value-added taxes (VAT), and restrictive trade policies that disadvantage American businesses.
According to the proclamation, foreign trade practices have weakened U.S. manufacturing, disrupted critical supply chains, and made the country’s defense-industrial base vulnerable.
The 10% blanket tariff applies to all imports, while nations with the largest trade surpluses against the U.S. will face even higher reciprocal tariffs starting April 9, 2025.
The White House emphasized that the tariffs would remain in place until the administration determines that U.S. trade partners have taken “significant steps” to address trade imbalances.
The order also grants Trump the authority to increase levies if trading partners retaliate or reduce them if they comply with U.S. demands.
Certain goods, including pharmaceuticals, semiconductors, steel, and critical minerals unavailable in the U.S., will be exempt from the tariffs. However, non-compliant imports from Canada and Mexico outside the U.S.-Mexico-Canada Agreement (USMCA) will face tariffs of up to 25%.
Trump’s tariff decision has drawn swift reactions from major trading partners, with concerns that the move could escalate into a full-blown trade war.
British Business Secretary Jonathan Reynolds acknowledged the impact on U.K. exports, expressing hopes for a trade deal to “mitigate the impact” of the tariffs.
“It’s in no one’s interest to start a trade war. Our focus remains on securing a deal, but we will take necessary measures to protect the U.K.’s economy,” Reynolds stated.
Italian Prime Minister Giorgia Meloni condemned the tariffs as “wrong” and warned against policies that could weaken the West while benefiting rival economies.
“We will explore all avenues to reach an agreement with the United States and avoid a trade conflict that could harm both economies. Italy will act in its national interest, alongside our European partners,” Meloni stated.
Australian Prime Minister Anthony Albanese also hit back at the tariffs, calling them “unwarranted” and inconsistent with the U.S.-Australia free trade agreement.
“A reciprocal tariff should be zero, not 10%. The U.S. enjoys a trade surplus with Australia, making these tariffs illogical. This is not how allies treat each other,” Albanese said.
New Zealand’s Trade Minister Todd McClay rejected the U.S. administration’s claim that his country imposes excessive tariffs on American goods, stating that New Zealand operates a “very low tariff regime” with rates below the U.S. baseline of 10%.
“We won’t retaliate. Raising tariffs only increases costs for our consumers and fuels inflation,” McClay said.
With tensions rising, analysts warn that Trump’s tariff escalation could trigger retaliatory measures from affected nations, further straining global trade relations.
