US President Donald Trump will implement reciprocal tariffs on imports from April 2, a move he claims will ‘free America’ from dependency on foreign goods.
The measure, which has been described as ‘Liberation Day’ by Trump, is expected to have significant economic ramifications for trading partners, including India, the European Union, and South Korea.
According to a reports, Trump has stated that these tariffs will match the duty rates other countries impose on American goods.
However, the full details of the plan remain undisclosed. White House Press Secretary Karoline Leavitt, speaking on Monday, indicated that the president’s tariff strategy would be formally unveiled on Wednesday but declined to confirm whether specifics would be disclosed immediately.
The Republican leader has consistently argued that tariffs will shield American industries from unfair competition, bolster federal revenue, and provide leverage in trade negotiations.
However, economists have cautioned that broad-based tariffs at such levels could prove counterproductive, potentially leading to higher consumer prices and declining global trade.
Peter Navarro, Senior Counsellor for Trade and Manufacturing to Trump, told Fox News Sunday that the overall tariff plan could raise as much as $600 billion, with an estimated average rate of 20 per cent.
The reciprocal tariffs are expected to apply across the board, including to nations such as India, the European Union, South Korea, and Brazil.
While India and the US have held trade talks in New Delhi in the run-up to the rollout, there has been no indication of any tariff exemptions.
Additionally, deferred import duties on Canadian and Mexican goods are set to take effect soon. Trump had granted an extension for imports covered under the US-Mexico-Canada Agreement, which expires on April 2.
Among the additional tariffs to come into force is a 25 per cent duty on imports from any country purchasing oil or gas from Venezuela.
Auto imports, too, will be subjected to a 25 per cent levy from April 3, with further taxes on auto parts to be introduced by May 3.
The White House projects that these duties will generate approximately $100 billion in revenue.
The administration has already implemented a 10 per cent tariff on all Chinese imports from March 4, prompting retaliatory duties from Beijing.
China has imposed a 15 per cent tariff on American coal and liquefied natural gas, along with a 10 per cent duty on crude oil imports from the US.
Additionally, a 25 per cent tariff on steel and aluminium imports took effect last month, with exemptions removed and aluminium duties increased from Trump’s 2019 tariffs.
Trump has indicated that further tariffs could be imposed, including on copper, timber, pharmaceutical drugs, and computer chips.
The president has stated that he will not negotiate on the new tariffs until after they take effect. He has also suggested that the 25 per cent tariff on auto imports should be permanent.
Meanwhile, the European Union has announced countermeasures against US goods, targeting American beef, poultry, bourbon, motorcycles, peanut butter, and jeans, among others.
The EU’s response, initially planned in two phases for April 2 and April 13, has been postponed until mid-April.
While some nations, such as Canada, have already introduced countermeasures, Mexico has yet to retaliate, reportedly hoping to de-escalate tensions.
