President Donald Trump signed an executive order Wednesday imposing reciprocal tariffs on countries worldwide, fulfilling a long-standing trade promise. The move, aimed at bolstering U.S. manufacturing, has triggered market turmoil.
A minimum 10% tariff will apply to all nations except Canada and Mexico, with significantly higher rates for what Trump calls the “worst” trade offenders. China faces a 34% tariff, while the European Union, Vietnam, and Sri Lanka will see rates as high as 46%.
Speaking from the Rose Garden, Trump framed the policy as a declaration of “economic independence.” He asserted that the measure would boost domestic production, open foreign markets, and dismantle trade barriers. “More production at home will mean stronger competition and lower prices for consumers,” he said.
According to a senior White House official, roughly 60 countries will face tariffs exceeding 10%. Türkiye, the UK, Kenya, Iceland, Panama, and others are subject to the baseline tariff. Canada and Mexico, previously targeted for penalties over migration and fentanyl concerns, are exempt.
The White House announced that the 10% tariffs take effect at midnight on April 5, while higher penalties will be enforced starting April 9. These measures will remain in place until Trump deems trade conditions sufficiently fair.
Markets have been in decline since February, when Trump first hinted at the policy. Stock futures fell sharply following the announcement, with Nasdaq futures dropping over 2.3% and the S&P 500 losing more than 1.5%.
While supporters praise the initiative as a long-overdue trade correction, critics warn of higher consumer costs and a potential recession. The global response to the tariffs is expected to shape economic relations in the coming months.
