President Trump announced that the U.S. will impose a minimum baseline 10% tariff on all imported goods and higher “reciprocal” tariffs on countries that impose tariffs on U.S. exports.
These tariffs, set to take effect Thursday, will be half the rate of tariffs those countries impose on U.S. exports.
Trump emphasized the tariffs as a response to chronic trade deficits, describing them as a national emergency that threatens U.S. security and way of life.
He also announced 25% tariffs on foreign cars and auto parts, aiming to bring back manufacturing jobs and reduce trade deficits.
Additionally, the Trump administration revealed that Canada and Mexico will be exempt from the baseline 10% tariff and reciprocal levies for now.
The 10% tariff would only be imposed if the original 25% duties on Canadian and Mexican imports are terminated or suspended.
These 25% tariffs were introduced due to concerns about drug and crime flows from these neighboring countries into the U.S.
