President Trump says he will impose both reciprocal tariffs and additional sectoral tariffs on April 2

President Trump said that both reciprocal and sectoral tariffs will take effect on April 2, alongside new duties on vehicles. He also reaffirmed that tariffs on U.S. steel and aluminum will move forward with no exemptions. 

Trump confirmed that the reciprocal and sectoral tariffs, starting at the beginning of next month, will target trading partners, including China and India. According to reporters aboard Air Force One, he ruled out exemptions on steel and aluminum tariffs. The proposed tariff measures aim to address trade imbalances by imposing duties equivalent to those levied on U.S. exports. 

Trump previously said that his administration was preparing what he dubbed reciprocal tariffs — which would hit imports from each country with a tariff rate determined based on a calculation incorporating its own tariff and non-tariff barriers.

According to Bloomberg, the remarks signaled that Trump plans to press ahead with a more aggressive tariff regime despite initial moves “roiling financial markets and straining alliances.”

Trump says tariffs will apply to friends and foes alike without exemption 

Yahoo Finance reported that President Trump’s tariffs are reshaping U.S. trade policy and overhauling decades of free-trade agreements with friends and foes alike. Trump said he would impose broad reciprocal and sector-specific tariffs starting early next month. He also told reporters aboard Air Force One that both types of levies would be placed on foreign goods imported to the U.S. 

According to Trump, April 2 is going to be a liberating day for the U.S. because the country will be “getting back some of the wealth that very, very foolish presidents gave away because they had no clue what they were doing.”

The president also said he wants to prepare key U.S. industries, including automobiles, steel, aluminum, microprocessors, and pharmaceuticals. However, whether sectoral tariffs will be incorporated into or added to the reciprocal tariff regime remains unclear.

“They charge us, and we charge them. Then, in addition to that, on autos, on steel, on aluminum, we’re going to have some additional tariffs.”

~ President Donald J. Trump 

Trump’s administration imposed 25% tariffs on all steel and aluminum imports on Wednesday last week, impacting Europe, along with Canada, Mexico, and others. However, the president subsequently offered a one-month extension for goods compliant with the North American ‘USMCA’ trade deal negotiated during his first term. Trump has also said Canadian energy and potash, a key fertilizer, would only be hit with a 10% tax.

The European Union (EU) retaliated with targeted levies on U.S. goods starting in April, and Canada also responded with retaliatory tariffs. 

Trump promises tariffs will make America rich again

Trump promised to usher in a “golden age of America” through a combination of tariffs, tax cuts, government regulations, and spending trimming. He boasted that America’s momentum, spirit, pride, and confidence were all back a few weeks into the second term of his presidency. New tariffs on goods from America’s largest trading partners, Mexico, Canada and China – countries that account for about 40% of US exports and 42% of imports – took effect on the same day as the announcement.

The president argued that tariffs were about making America rich again and great again. He added that the measures were necessary to restore fairness in trade, restart industrialization, create jobs, and help achieve geopolitical goals. Trump criticized countries like the European Union, China, Brazil, and India for imposing higher tariffs on American goods, deeming the current system unfair.

However, Investing.com noted that the impending tariffs had sparked global concerns about escalating trade tensions and potential retaliatory measures from affected nations.

Trump spoke of big gains from tariffs, saying a $1.7 trillion manufacturing revival was underway, and it paved the way for large foreign investments that would otherwise not have landed in the United States.

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