President Donald Trump has introduced a new tariff policy aimed at reshaping US trade relations, imposing a 20 per cent import duty on goods from the European Union and a 34 per cent tariff on Chinese imports. Speaking at a signing ceremony in the White House garden, Trump argued that these measures are necessary to correct what he described as longstanding trade imbalances that have disadvantaged the United States.
In a nearly hour-long speech, the president pointed to the 1.2 trillion dollar US trade deficit in 2024 as evidence of a flawed system. He stated that the new tariff rates were determined by assessing the trade barriers imposed by various countries on American goods, then applying a tariff set at half of that percentage.
Additionally, he introduced a baseline tariff of 10 per cent for all foreign imports, calling it the ‘entry fee’ for accessing the world’s largest consumer market.
Among key US trade partners, Japan will face a 24 per cent tariff, India 26 per cent, the United Kingdom and Brazil 10 per cent, while imports from Israel will be subject to a 17 per cent tariff. Trump also confirmed that foreign-manufactured vehicles will be taxed at a flat 25 per cent.
The president noted that several countries had already reached out seeking exemptions from the new tariffs. However, he made it clear that any reductions would be conditional on those nations removing barriers to American exports. He criticized various trade policies, citing the European Union’s restrictions on US poultry and Australia’s limitations on American beef imports as examples of unfair practices.
Trump emphasized that domestic production would not be subject to these tariffs, arguing that this policy would encourage industrial investment and job creation within the United States. He framed the new system as a move toward fairer global trade and economic self-sufficiency.
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