Trump: Declaration of Economic Independence as Equivalent Tariff Issued 【Update】

On Wednesday, April 2nd, President Trump announced a plan for reciprocal tariff policies in the Rose Garden of the White House.

Trump began by stating, “This is one of the most important days in American history, this is our declaration of economic independence. For years, hardworking American citizens have been marginalized while other countries have become wealthy and powerful… but now is the time for our prosperity.”

“Our country and taxpayers have been exploited for fifty years, this situation will no longer continue. In a few minutes, I will sign a historic executive order to implement reciprocal tariffs,” he said.

“America can no longer produce enough antibiotics to treat our patients. Almost all of our computers, phones, TVs, and electronic products rely on imports. Now, a shipyard in China produces more ships in a year than all shipyards in the United States combined. Long-term trade deficits are no longer just an economic problem. They are a national emergency,” Trump said.

Regarding updates:

“Through today’s action, we are also standing up for the great farmers and ranchers who have been cruelly treated by countries around the world. Canada imposes a 250-300% tariff on many of our dairy products… Australia bans American beef. However, just last year, we imported $30 billion worth of Australian beef,” the President said.

Trump said, “For decades, the United States has been reducing trade barriers for other countries, while those countries impose huge tariffs on our products and set up unbearable non-tariff barriers to destroy our industries… all of this has happened and the United States has not reacted.”

Michigan retired auto worker, Brian Pannebecker, a 25-year member of the auto union, attended the event in the Rose Garden of the White House. He said, “I grew up in northern Detroit, Michigan… I witnessed the closures of factory after factory in Detroit and the Detroit metropolitan area… and the President’s policies will bring products back to these factories.”

At 4 p.m. Eastern Time, President Trump began his speech in the Rose Garden.

“We have some very, very good news today,” Trump said. “Today is Freedom Day.”

He mentioned that for decades, the United States has been “plundered and robbed” by countries near and far, friends and foes.

“April 2nd, 2025, will forever be remembered as the day of America’s industrial rebirth, the day America’s destiny was reclaimed, the day we began to make America prosperous again,” he said.

President Trump stated that today is “one of the most important days in American history,” “this is our declaration of economic independence.”

The President said that the United States will use the funds generated from tariffs to “reduce our taxes and pay off our national debt.”

Trump will sign an executive order soon. He introduced that they will “impose reciprocal tariffs on countries around the world.”

“Reciprocal. This means they impose tariffs on us, we impose tariffs on them. Very simple. It can’t get any simpler than this,” the President said.

He emphasizes again that tariffs will bring a “golden age” to America.

“Jobs and factories will robustly return to our country, you will see it happening. We will strengthen our domestic industrial base,” Trump said.

“Starting at midnight, we will impose a 25% tariff on all foreign-made cars,” Trump reiterated an earlier statement by the White House on Wednesday. The crowd immediately erupted into cheers.

“The United States imposes a 2.4% tariff on motorcycles from other countries. Meanwhile, Thailand and other countries charge much higher prices, such as India charging 60%, Vietnam charging 70%, 75%, and other countries even higher,” the President added.

In a federal bulletin notice, the White House supplemented the details of the car tariff announcement issued by President Trump last week, directing the Commerce Department to establish a process within 90 days to add more components to the list, including responding to requests from domestic producers.

According to the information in the federal bulletin, the 25% car tariff will take effect at 12:01 a.m. Eastern Time on Thursday, April 3rd, while the 25% car parts tariff will take effect at 12:01 a.m. Eastern Time on May 3rd.

The notice states that the list of components currently includes dozens of tariff codes, including engines, transmissions, power systems, electrical components, and other components such as brake hoses, but domestic producers can request additional items to be added to the list.

The notice also states that for vehicles that meet the origin rules of the US-Mexico-Canada Agreement, importers only need to pay a 25% tariff on non-US parts in the order.

When talking about car tariffs, Trump singled out two allies – Japan and South Korea. He also mentioned Toyota in Japan, saying Toyota has sold one million foreign-made cars in the United States.

He mentioned several examples of countries imposing higher tariffs on the United States:

– The United States imposes a 2.5% tariff on passenger cars (with internal combustion engines), while the EU (10%) and India (70%) impose much higher tariffs on the same product.

– For network switches and routers, the United States imposes a 0% tariff, but India imposes a 10-20% tariff rate.

– Brazil (18%) and Indonesia (30%) impose higher tariffs on ethanol than the United States (2.5%).

– For shelled rice, the United States imposes a 2.7% tariff, while India (80%), Malaysia (40%), and Turkey (31%) impose higher tariffs.

– Apples enter the United States duty-free, but Turkey (60.3% tariff) and India (50% tariff) do not.

Since taking office, Trump has fulfilled his campaign promise by taking swift action, placing tariffs at the core of US economic policy.

His strategy includes implementing new tariffs and/or using tariffs as leverage to resolve other disputes, representing a significant shift in global economic and trade policy for over a hundred years, and potentially directly affecting most major participating countries in the World Trade Organization (WTO) system.

The Trump administration will use tariffs in three situations, including correcting unfair trade practices, increasing federal revenue, and as leverage in negotiations with foreign countries instead of sanctions.

At the same time, Trump also aims to use tariff revenue to offset the revenue loss resulting from policies like tax cuts. According to Bloomberg, tax cuts are expected to result in a $4.6 trillion loss in government revenue over ten years.

Understanding the consequences of Trump’s “Freedom Day” reciprocal tariffs

Reported by Reuters, spot gold rose 0.5% to $3,127.23 per ounce at 11:45 a.m. Eastern Time on Wednesday. U.S. gold futures rose 0.7% to $3,166.30.

“The risk of tariffs triggering inflation still exists, which boosts gold prices,” said Suki Cooper, an analyst at Standard Chartered Bank. “While a U.S. economic recession is not our base assumption, this risk helps maintain strong interest in gold as a safe haven.”

Links:
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