Donald Trump Tariffs: Donald Trump’s latest U-turn on April 2 ‘Liberation Day’ tariff
After hinting that some countries may get a breather from Donald Trump’s reciprocal tariff coming into effect from April 2, the Liberation Day for the country, as he called it, the president took a U-turn Sunday and said all countries will get taxed. Speaking to reporters on board Air Force One on Sunday, Trump said that his long-anticipated tariff announcement on April 2 would “start” with all countries. You’d start with all countries,” Trump told reporters. “Essentially, all of the countries that we’re talking about.”
Last week, Trump said the reciprocal tariffs would be very lenient and that people would be surprised.
Trump’s fluctuating statements on tariffs have rattled global markets, leaving investors uncertain whether the US president plans to implement permanent tariffs or sees them mainly as a negotiation tactic.
What is reciprocal tariff?
A reciprocal tariff proposed by Donald Trump is a trade policy where the United States would impose tariffs on imports from other countries at rates equal to the tariffs those countries impose on US exports. The goal is to mirror foreign tariffs to ensure fair trade by matching the duties charged on American goods abroad, addressing perceived imbalances in international trade relationships.
What is a secondary tariff?
Trump has announced a secondary tariff on Venezuela and threatened that he would do the same on Russia. In this proposal, the US would impose a 25 per cent tariff on imports from any country that purchases oil or gas from Venezuela. This policy aims to penalize nations engaging in trade with Venezuela, indirectly pressuring them to cease such transactions by increasing the cost of their exports to the US.
Tariffs on Canada, Mexico
The Trump administration announced several tariffs on Canadian good and Mexican goods which were partially halted for the time being as talks were on.
Automobile tariff
Donald Trump proposed an automile tariff that would come into effect on April 3. It is a 25% tariff on all imported passenger vehicles (such as sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (including engines, transmissions, powertrain parts, and electrical components) not manufactured in the United States. Vehicles and parts compliant with the United States-Mexico-Canada Agreement (USMCA) are partially exempt, with tariffs applied only to their non-US content.
