U.S. President Donald Trump delivered a speech on April 2 declaring “Liberation Day” for the nation. He intensified global trade policies, which will likely impact American consumers and businesses while raising concerns about economic stability, according to CNN.
Declaring a national economic emergency, he announced a broad tariff plan that could have far-reaching effects. Trump framed the moment as a pivotal shift, stating, “my fellow Americans, this is Liberation Day.”
Trump described the U.S. as having been exploited for decades by foreign nations. “For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” he said.
“[Workers] really suffered gravely. They watched in anguish as foreign leaders have stolen our jobs, foreign cheaters have ransacked our factories and foreign scavengers have torn apart our once beautiful American dream,” Trump added.
According to Trump, the American dream had faded from public discourse, exploiting taxpayers for over 50 years.
“But it is not going to happen anymore,” he declared.
He revealed plans to sign “a historic executive order” imposing reciprocal tariffs on countries worldwide.
The policy will ensure that if foreign nations impose tariffs on the U.S., the U.S. will respond. “This is one of the most important days, in my opinion, in American history,” Trump said. “It’s our declaration of economic independence.”
As part of this trade policy, Trump announced a 10 per cent baseline tariff to take effect on April 5 for most goods from many countries. Steeper tariffs will go into effect on April 9 for 60 nations labeled as “worst offenders,” according to White House officials.
The highest tariff rate announced of 49 per cent will be imposed on Cambodian imports. Vietnam will face a 46 per cent tariff, China with 34 per cent and the European Union with 20 per cent.
China will also now face a cumulative tariff of 54 per cent when factoring in the 20 per cent duty already in place. The U.S. imported US$439 billion worth of goods from China last year, making it the second-largest import source behind Mexico, according to CNN.
Beginning on May 2, the 54 per cent tariff will also apply to packages valued under US$800 from China and Hong Kong.
Trump defended the tariffs as a necessary step toward achieving “economic independence.”
“Jobs and factories will come roaring back into our country, and you see it happening already,” he said. He also suggested that tariff revenue could replace income taxes, though economists widely dispute this claim, according to CNN.
Trump cited currency manipulation, tax policies and unfair labour practices as justifications for the higher tariffs as per a report from the U.S. Trade Representative outlining foreign trade barriers.
Despite the widespread tariffs, goods from Canada and Mexico that comply with the United States-Mexico-Canada agreement will be exempt.
Automotive parts and vehicles imported into the U.S. will face a 25 per cent tariff, imposed on April 3, while steel and aluminum will remain under a previously imposed 25 per cent tariff.
