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US President Trump announces sweeping new tariffs to take effect Friday: Canada and European Union warn of retaliation

cnnnews.com By Canada Nepal

April 3, 2025
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Agency. US President Donald Trump announced sweeping new tariffs on Wednesday. Dubbed ‘Liberation Day’, the new tariffs announced by Trump have sparked a global debate over whether they could spark a global trade war.

Trump announced on Wednesday that he would impose a 26 percent “like-for-like” tariff on India.

The US has imposed tariffs of 34 percent on China, 20 percent on the European Union, 25 percent on South Korea, 24 percent on Japan, 46 percent on Vietnam, and 32 percent on Taiwan. A new tariff rate of 10 percent has been imposed on Nepal.

The US will impose tariffs on about 60 countries equal to half the tariffs they impose on American products.

According to Trump, a 10 percent basic tariff will be applied to all goods imported into the United States. According to White House officials, the basic tariff will take effect at 12:01 a.m. on April 5, while the “like-for-like” tariff will take effect at 12:01 a.m. on April 9.

Reacting to the tariffs imposed on India, Trump said, “India is very tough. Modi is a good friend of mine, but he is not treating America right.”

According to Trump, India imposes customs duties of up to 52 percent on the US, so the US will impose a customs duty of 26 percent on India.

“I could have imposed a completely uniform tariff, but that would be difficult for many countries, so we don’t want to do that,” he said.

6 key points from Trump’s speech

1. 25 percent tariff on autos: The US will now impose a 25 percent tariff on foreign-made vehicles. Earlier, the US levied only 2.4 percent tariff on motorcycles imported from other countries, while India imposed 60 percent, Vietnam 70 percent and other countries imposed even higher tariffs.

Trump announced the new tariff rates, saying, “America has been cheated for 50 years, but starting today it ends.”

2. America will become the richest country: Trump said at the ceremony to announce the new tariff rates that this decision will benefit America. “Now America will be richer than any country in the world. Today we stand on the side of American workers. Finally, we are implementing the ‘America First’ policy,” he said.

3. To avoid tariffs, manufacture in the US: Trump said that the US will now respond equitably in the case of tariffs. ‘Countries that want access to the US market will have to pay the price,’ he said. ‘Anyone who wants tariff exemptions will have to manufacture in the US.’

4. Jobs and industries will return to America: According to Trump, many countries have made themselves rich by taking advantage of the American market, but have closed their markets to American goods. ‘Now America will also think about its own benefits. Jobs and industries will return to America,’ he said.

5. Canada’s dairy tariffs are unfair: Trump complained that Canada has imposed high tariffs on dairy products. “It’s unfair to American farmers,” he said.

He added, “The United States has been giving subsidies to countries like Canada and Mexico to protect their industries. Now we will stand up for the rights of our farmers and ranchers.”

6. American Economic Freedom Day: Trump portrayed the day the new tariffs were announced as America’s Liberation Day.

“Today is the day America becomes economically independent. We are declaring ‘like for like’ tariffs, according to which the United States will impose the same tariffs on any country that imposes them on it.”

Trump announced the measures with cabinet members in the White House Rose Garden at 4 p.m. (2000 GMT) after Wall Street markets were closed. He said the measures would stop America from “getting ripped off” and usher in a new “golden age” for American industry.

Early Wednesday morning, Trump wrote a line in large letters on his Truth social network, “It’s Liberation Day in America!”

Republican billionaire Trump has been keen on tariff reform, touting it as the best way to address America’s trade imbalances with both friends and foes.

Critics say that as importers pass on the costs, it could not only burden American consumers but also increase the risk of a damaging recession at home and abroad.

Global markets have been volatile for days ahead of Trump’s announcement, and countries that could be targeted have called for talks, even as they have prepared retaliatory measures.

Warning of resistance

Major economies, including the European Union (EU) and Canada, have vowed to retaliate.

“We will be very careful about the measures we take to fight for Canada,” Canadian Prime Minister Mark Carney said Tuesday.

The EU said on Tuesday it hoped to find a negotiated solution but that “all tools are on the table” to retaliate. Trump has accused the EU of trying to “cheat” on the United States.

British Prime Minister Keir Starmer spoke with Trump about “productive talks” towards a UK-US trade deal. Vietnam said on Tuesday it would cut tariffs on a range of goods to appease Trump.

Meanwhile, other major exporters are trying to build coalitions to resist Washington. China, Japan and South Korea have accelerated negotiations on free trade agreements.

Mexico cut its 2025 growth forecast on Tuesday, citing tensions with its largest trading partner.

The EU will respond by April.

The European Union (EU) will respond to new customs duties announced by the United States on Wednesday “by the end of April,” a French government spokeswoman said after a cabinet meeting.

“There will be two responses. The first, in mid-April, is a response to the tariffs already decided on steel and aluminum,” said government spokeswoman Sophie Primas. “Then there will be a detailed study by region and a coordinated, united and strong European decision will be announced before the end of April.”

French President Emmanuel Macron will speak with European Commission President Ursula von der Leyen on Wednesday afternoon, Primase said.

“France does not speak for the European Union when it comes to trade policy. We speak,” the commission’s trade spokesman, Olof Gill, told reporters in Brussels.

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