US President’s “Liberation Day” Tariffs Spark Global Trade Tensions

NPR

The US President announces "reciprocal tariffs" during an event on Wednesday.

On 2 April, 2025, US President Donald Trump announced sweeping tariffs aimed at reducing trade imbalances and bolstering domestic manufacturing. Dubbed “Liberation Day,” the policy introduces a 10% blanket tariff on all imports into the US, effective April 5. 

Additionally, higher “reciprocal” tariffs have been imposed on specific countries with substantial trade deficits or alleged unfair trade practices, set to take effect on April 9.

Key Tariffs:
• China: 54% total tariff (including an additional 34%)
• Vietnam: 46% tariff
• European Union: 20% tariff
• United Kingdom & Australia: 10% tariff

The administration argues that these tariffs address long-standing trade imbalances, unfair foreign tariffs, and currency manipulation, justifying them under the International Emergency Economic Powers Act of 1977. The US President claims the measures will revitalise US industries, create jobs, reduce taxes, and contribute to national debt reduction.

However, the policy has triggered strong international backlash. China and the EU have signalled retaliatory measures, raising fears of an escalating trade war. Critics warn of rising consumer prices and strained global trade relations, while supporters insist the tariffs will protect American businesses and encourage fairer competition.

As the new tariffs take effect, the world watches closely to see how markets, businesses, and diplomatic ties respond to this bold economic shift.



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