'Seun Ibukun-Oni, Abuja
DAILY COURIER – In a major policy shift, U.S. President Donald Trump has announced sweeping new tariffs under what he calls "Liberation Day" economic measures, aiming to reshape the U.S. industrial landscape and drive economic growth. Speaking at the "Make America Wealthy Again" event in the White House Rose Garden, Trump framed the move as a decisive step toward reclaiming economic dominance, citing decades of trade imbalances.
"For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense," Trump declared. "But now it’s our turn to prosper and, in so doing, use trillions and trillions of dollars to reduce our taxes and pay down our national debt."
A Hard Reset on Trade
The newly announced measures include a 25-percent tariff on auto imports from all foreign manufacturers, set to take effect on Wednesday. The tariffs extend beyond the automobile industry, with a baseline 10-percent tariff on all imports and individualized tariff rates on over 50 countries. The administration has justified these measures as necessary to level the playing field and encourage domestic production.
Trump presented a chart displaying tariff rates imposed by different trading partners and emphasized that the U.S. would charge approximately half of what other nations levy on American goods. "We will charge them approximately half of what they are—and have been—charging us. So the tariffs will be not a full reciprocal. I could have done that I guess, but it would’ve been tough for a lot of countries," he stated.
Global Response and Economic Concerns
The announcement has sparked immediate backlash from trading partners, including the European Union, Canada, and Mexico, who have vowed to impose retaliatory tariffs. Economic experts have also expressed concerns over the potential repercussions of the new trade policy.
Gary Hufbauer, a non-resident senior fellow at the Peterson Institute for International Economics, criticized Trump’s rhetoric and the broad scope of the tariffs, calling them "a rabid anti-foreign preface, plus extreme exaggeration of foreign barriers." He also noted that while some countries, such as Turkiye and Brazil, were granted exceptions, the move could strain the Western alliance.
Tariff Breakdown by Country
The new tariffs include significant hikes on goods from major U.S. trading partners:
34% on China
26% on India
25% on South Korea
24% on Japan
32% on Taiwan
10% on the United Kingdom
46% on Vietnam
31% on Switzerland
Additionally, specific tariffs have been imposed on smaller economies:
49% on Cambodia
30% on South Africa
32% on Indonesia
10% on Brazil
10% on Singapore
Trump reiterated that these rates were calculated by taking half of the tariffs currently levied on U.S. goods by these nations.
Stock Market Reaction and Economic Outlook
Following the announcement, the U.S. stock market saw a sharp decline, though it later recovered. Trump, known for touting stock market performance during his presidency, assured the public that the market would "blow away" its previous records in the long run.
"Maybe the numbers won’t show, but I think they’re going to show much better than even those numbers," he predicted.
Impact on Immigration and Workforce
Interestingly, amid aggressive tariff policies, Trump also spoke on immigration, signaling a willingness to allow more foreign workers into the country to meet labor demands in industries affected by the tariffs.
"We want people, by the way, to come into our country, but we want them to come in through a legal process," he stated. "We need more people. We need people to run these plants and to help the auto workers and the Teamsters and the non-union people and everybody else."
This shift comes as the administration has simultaneously intensified efforts to deport undocumented immigrants, though legal hurdles have slowed enforcement actions.
Message to Global Leaders
In his address, Trump directly challenged foreign leaders to dismantle their trade barriers.
"To all of the foreign presidents, prime ministers, kings, queens, ambassadors, and everyone else who will soon be calling to ask for exemptions from these tariffs, I say, ‘Terminate your own tariffs. Drop your barriers.’"
A Pivotal Moment for U.S. Trade
With the new tariffs set to take effect within days, the global economic landscape is bracing for potential trade disruptions. While the Trump administration insists that these measures will boost American manufacturing and economic strength, critics warn of rising consumer prices and potential retaliatory trade wars.
As the world watches, the coming months will reveal whether Trump’s bold trade gambit will indeed reset U.S. industry or trigger a new wave of economic tensions.
