US President Donald Trump has declared a national emergency due to the country’s substantial trade deficits and has announced the imposition of new reciprocal trade tariffs, the White House said in a statement.
Invoking the International Emergency Economic Powers Act of 1977 (IEEPA), the President aims to strengthen the US’ international economic position and protect US workers from what he describes as non-reciprocal trade practices.
Imports of steel, aluminium, copper and specific minerals not available in the US are exempt from the reciprocal tariff. Steel and aluminium are already subject to Section 232 tariffs.
A 10% tariff will be applied to all countries, starting on 5 April 2025, with an individualised higher tariff for nations with the largest trade deficits with the US, effective from 9 April 2025.
These tariffs will remain in place until President Trump deems the threat from the trade deficit and non-reciprocal treatment resolved, the statement added.
The IEEPA Order also allows for tariff adjustments in response to foreign retaliation or significant steps by trading partners to address trade imbalances.
The statement stated that tariffs are essential for fair trade and reducing the trade deficit, emphasising the need for other countries to reciprocate the US’ treatment in trade relations.
The administration highlights the economic and national security risks posed by the decline in domestic manufacturing capacity and the reliance on foreign supply chains, exacerbated by practices such as currency manipulation and the imposition of value-added taxes by other countries.
The tariffs also address the annual costs to the US economy from counterfeit goods and the theft of trade secrets, which range between $225bn and $600bn.
Last month, New York copper prices surged by more than 5%, outpacing global benchmarks, after President Trump proposed a 25% tariff on metal imports.
