The President of the United States, Donald Trump, has unveiled his long-awaited “reciprocal prices” in a decision that is expected to track world trade relations.
Trump on Wednesday appeared in the pink Garden of the White House, where the colonnades had been draped with large American flags, to sign the decrees authorizing the prices.
He supervised tax increases as a blow against unfair commercial practices, painting a portrait of the United States as a country operated by its nearest allies.
“For decades, our country has been pillage, looted, raped and looted by close nations and far, both friends and enemy,” Trump told an audience of manufacturing workers, cabinet members and journalists.
“Foreign leaders have stolen our jobs. Foreign cheaters ransacked our factories. And foreign scavengers have torn our formerly beautiful American dream. ”
But he proclaimed that Wednesday would mark a turning point in the history of the United States, marking the end of the “vicious attacks” which he said that the country had resisted.
“On April 2, 2025, we will forever remember when the day when American industry is reborn, the day of the destiny of America was recovered,” said Trump.
Supposing the International Emergency Economic Powers of 1977, Trump announced a 10% tariff on all countries, scheduled to take effect on April 5.
Then, he revealed that there would be “individualized” prices for countries with the largest trade deficits with the United States. These prices would come into effect four days later, April 9.
Trump explained that his team calculated the “individualized” prices taking half of what he said that these countries had billed the United States for his exports.
“We will charge them about half of what they are – and we have – invoice ourselves. Thus, the prices will not be a full reciprocal,” said Trump. “I could have done that, I guess, but it would have been difficult for many countries. We didn’t want to do that. ”
He then signaled the secretary of trade Howard Lutnick to the pink pink Garden with a graph which illustrated some of the prices to come.
The graph has shown that the European Union was heading for 20%prices. China, on the other hand, had been assigned to 34%. Vietnam would receive 46% and Thailand 36%.
Notably absent were Mexico and Canada, the two largest trade partners in the United States and its immediate neighbors.
These countries, said the White House, would remain under punitive prices, designed to align them with Trump’s policies on border security.
All goods not covered by the American-mexico-Canada free trade agreement would face a rate of 25%, with the exception of energy products. Rather, they face 10%prices.
Wednesday’s announcement, although widely awaited, has always sent shock waves around the world.
“In short, this is a historic moment,” said Dan Ciuriak, director of the Ciuriak consulting company based in Canada, giving a sign of the Trump administration isolated policies.
“I think it will reshape the world. I think we see the possibility of the emergence of something as a “fortress in North America”. “
He noted that poor countries in places like Southeast Asia seem to be among the hardest affected by imminent prices.
“Developing countries have been affected by very, very high prices. And this will have geopolitical ramifications,” said Ciuriak.
“These countries are the poorest in the world, and the idea that they have rich in the back of American workers are not very tenable. I don’t think it will play well in the rest of the world. So we will see, I think, tectonic changes in international relations because of this. ”
A few minutes after Trump’s announcement, the international backlash began to break out, the world leaders denounced radical as unjustified prices.
“The unilateral action that the Trump administration has taken today against each nation of the world does not surprise,” said Australian Prime Minister Anthony Albanese said in a press conference. “But let me be clear: they are completely unjustified.”
Australia faces 10% tariffs from the Trump administration. Like many leaders, Albanians are committed to protecting workers in his country from the repercussions of these taxes.
“Administration prices have no logic base, and they go against the basis of the partnership of our two nations. This is not the act of a friend,” he added.
The Taoiseach Micheal Martin, Ireland, has offered a broad message warning damage to global trade relations and the United States of the United States.
“I firmly believe that the prices do not benefit anyone. They are bad for the global economy. They hurt people. They harm companies ”, said. “I therefore deeply regret the decision of the American administration this evening to perceive a tariff of 20% on all the goods imported from the European Union.”
Even Canada, which was exempt from the so-called reciprocal rates, sounded with its indignation in the face of the wider policy of the United States of unleashing of long-standing trade partners.
“During this crisis, we must act with a goal and a force,” said Canadian Prime Minister Mark Carney wrote on social networks. “My government fights the prices, will protect Canadian workers and industries and strengthen the greatest economy in the G7.”
Canada is one of the countries that have undertaken to meet the Trump administration prices with reprisal measures. Other countries, including Mexico, demonstrated: earlier on Wednesday, Mexican president Claudia Sheinbaum said she would avoid pursuing the “Tit-For-Tat” prices.
Experts say that prices – a kind of import tax – very often fall on the shoulders of consumers.
Trump has developed his prices as a means of reducing trade deficits and bringing foreign manufacturing to the American coast. He also said he was planning to use the prices to compensate for the American debt and pave the way for tax discounts.
But criticisms stress that trade deficits – when the money spent on exports is higher than the benefits of imports – is not necessarily a bad thing. They can be a sign of consumer habits or a strong currency.
Opponents of prices also argue that it will take years for the creation of new factories in the United States, making any economic advantage a distant perspective.
Reporting from the New York Stock Exchange, Al Jazeera’s correspondent Kristen Salooyy, noted that market volatility was a problem for investors this week, because they were preparing for prices and the resulting economic uncertainty.
“President Donald Trump’s tariff announcement intervened after the stock market markets in the United States closed in positive territory and immediately sent the term market to negative territory, reporting another fragile start to markets on Thursday,” said Salomey.
What could follow Trump’s announcement, she added, is not clear. Economists have looked at stock market clues like S&P 500 for signs of what will happen.
“Market analysts have disagreed by the fact that we saw the worst or not the impact of this policy on the markets,” said Salomey.
“Some argued that with a 10% drop in the S&P last month – the markets had already made a price in the cost of doing business with these prices. Others have warned that things could get worse with inflation and even a possible recession in the future following these policies. ”
But Trump and his allies dismissed fears of an economic slowdown. From the Rose Garden, Trump offered a preemptive refutation to foreign leaders who could “complain”.
“For all foreign presidents, the prime ministers, the kings, the queens, the ambassadors and all those who soon call to ask for exemptions from these prices, I say: put an end to your own prices. Place your obstacles. Do not manipulate your currencies,” said Trump.
He also pointed out that he thought that the prices were relatively generous, given the abuse he had felt in the United States.
“We are very nice. We are nice, very nice people,” he said, before adding: “You are not so nice when you are scammed.”
