Trump Declares National Emergency, Imposes Sweeping Global Tariffs

Washington, D.C. – April 2, 2025 – President Donald Trump has declared a national emergency to enhance U.S. competitiveness, protect national sovereignty, and reinforce economic security. The White House announced a new 10% tariff on all imports, set to take effect on April 5, along with additional "reciprocal tariffs" targeting countries with significant trade surpluses with the U.S., effective April 9.

Broad Tariff Measures

Under the new policy, China will face a 34% tariff on its exports to the U.S., adding to the existing 20% levy. The European Union will be subject to a 20% tariff, while Japan and India will see tariffs of 24% and 26%, respectively.  

Certain goods will be exempt from the reciprocal tariff scheme, including steel, aluminum, automobiles, and auto parts already covered by Section 232 tariffs. Energy products, critical minerals not available in the U.S., as well as gold, copper, pharmaceuticals, semiconductors, and wood products, will also be excluded. Meanwhile, Canada and Mexico will maintain exemptions under the USMCA agreement.  

Market and Global Reactions  

The announcement sent shockwaves through global markets, with S&P 500 futures falling more than 3% in early trading. Analysts expressed surprise at the scope of the tariffs, warning of inflationary pressures and potential economic disruptions.  

European officials have hinted at retaliatory measures, including higher tariffs on American goods such as whiskey, motorcycles, and luxury clothing. Additionally, EU policymakers are considering restrictions on U.S. technology and financial services as a countermeasure.  

Trump's Justification and Policy Goals

Trump framed the tariffs as a response to what he described as unfair trade practices that have led to large U.S. trade deficits. "We're going to start being smart, and we're going to start being very wealthy again," Trump stated, emphasizing that his administration aims to boost domestic manufacturing.  

The White House confirmed that Trump retains the authority to modify tariffs as needed. Moreover, a 25% tariff on foreign-made automobiles will take effect on April 3, reinforcing Trump's push for increased domestic production.  

Implications for Global Trade  

This sweeping tariff policy represents a major escalation in Trump's trade strategy, with far-reaching consequences for global supply chains, economic stability, and international relations. As trading partners weigh their responses, the coming weeks are likely to define the next phase of global trade tensions.