United States President Donald Trump has declared a national emergency aimed at improving the country’s economic situation and national security. Starting April 5, 2025, a new 10% base tariff will be introduced on imported goods, excluding those from Canada and Mexico.
The White House confirmed the announcement, explaining that the tariffs are intended to strengthen the US economy and enhance its competitiveness on the global stage. The new measures target the growing trade deficit, which Trump believes has weakened US manufacturing and national security. In his statement, the President stressed that the US could no longer accept unfair trade practices and that the tariffs would ensure reciprocity in international relations.
As per the decree, a 10% tariff will be applied across the board to all imports. However, certain countries with the largest trade deficits with the US will face additional duties. The most significant increases in tariffs will target China, with a 34% levy; the European Union (EU) and Great Britain, both facing 20%; and other nations, such as Vietnam, Taiwan, and South Korea, with duties ranging from 24% to 49%.
Tariff Rates on Key Countries
| Country | Tariff Rate (%) | Equivalent in GBP |
|---|---|---|
| China | 34% | £25.10 |
| European Union | 20% | £14.72 |
| Great Britain | 20% | £14.72 |
| Vietnam | 46% | £33.86 |
| Taiwan | 32% | £23.59 |
| Japan | 24% | £17.62 |
| South Korea | 25% | £18.33 |
| Thailand | 36% | £26.89 |
| Switzerland | 31% | £22.85 |
| Malaysia | 24% | £17.62 |
| Cambodia | 49% | £35.98 |
| South Africa | 30% | £22.18 |
| Canada | Exempt | £0.00 |
| Mexico | Exempt | £0.00 |
Countries exempt from these tariffs include Canada and Mexico, who remain covered under existing agreements, such as the United States-Mexico-Canada Agreement (USMCA).
Trump’s rationale for these new tariffs is rooted in concerns over economic independence and national security. He emphasised the need for foreign countries to adhere to the principle of “treat us as we treat them.” In addition to tackling trade imbalances, Trump raised concerns about the damage caused by smuggled goods, which he claims threaten both the economy and public safety.
In his statement, Trump made it clear that the introduction of these tariffs is only the beginning. He hinted at the possibility of further increases if necessary to achieve what he considers fair economic conditions in global trade.
One significant change in policy involves a 25% duty that will be applied to all foreign-made cars starting at midnight. This will mark a significant shift in US trade policy, targeting the automotive sector. Trump also announced that a 25% tariff would be imposed on imports of beer and aluminum cans, as well as several other consumer goods. These measures will impact billions of dollars’ worth of imports, with the beer tariffs alone affecting imports worth approximately $7.5 billion, a significant portion of which comes from Mexico.
The US Department of Commerce confirmed that the tariffs on beer and aluminum cans will begin on April 4, 2025. These changes are part of a broader strategy to counter what Trump views as the collapse of the US industrial base, which he attributes to past administrations.
As these tariffs come into effect, they are expected to trigger a ripple effect across the global economy, with potential price increases in several sectors. Bloomberg has warned that such actions could lead to greater economic instability, escalating tensions in international trade relations, and ultimately harming US consumers.
