On April 2, US President Donald Trump announced import tariffs on more than 180 economies, of which Vietnam will be subject to a rate of 46%.
At the event, the US President also brought a board showing the tax rates applied to each economy. Of which, the UK, Brazil, Singapore will be subject to a 10% tax. The European Union, Malaysia, Japan, South Korea, and India will be subject to 20-26%. China and Vietnam are among the countries subject to the highest tax rates, at 34% and 46%, respectively.
About half an hour after holding up a board announcing the reciprocal tariffs for each trading partner, President Trump signed the executive order imposing the tariffs.
US President signs decree imposing reciprocal tariffs on trade partners at the White House, April 2. Photo: Reuters
CNN quoted a US government official as saying that the tax will take effect from April 9.
“We’re going to impose half the tariffs they’re imposing on us. That’s not going to be the full rate. I could do that, but it would be very difficult for a lot of countries. We don’t want to do that,” Trump said at the White House.
On the tariff announcement board, the White House lists the tariffs that countries “are imposing on the United States” but does not explain how those numbers are calculated. For example, according to them, Vietnam, China, and the European Union are imposing tariffs on the United States at 90%, 67%, and 39%, respectively.
Mr. Trump spoke when announcing reciprocal tariffs applied to 180 economies. Source: ABC News
Earlier, US Treasury Secretary Scott Bessent told Senate Republicans that reciprocal tariffs would be a “ceiling” for the US to impose on countries, which could be reduced if trading partners meet the Trump administration’s demands.
However, some products from other countries will not be subject to reciprocal tariffs . For example, aluminum, steel, cars, and auto parts that were previously subject to a 25% tariff by the US will continue to be subject to that rate. The same goes for gold, copper, pharmaceuticals, semiconductors, and wood. Certain types of energy and minerals not found in the US are also not subject to reciprocal tariffs.
Mr. Trump also said that he would apply a 10% import tax on all imports into the US , starting April 5. That means all countries and territories will be subject to this common 10% import tax. Then, from April 9, the country’s largest trading partners will be subject to a higher reciprocal tax, according to the table Mr. Trump announced.
In his speech on April 2, he repeatedly praised the new import tariffs, calling them “a declaration of American economic independence.” He also repeated his assertion that jobs and factories would return to the United States, and that prices for consumers would fall as “domestic production and competition increase.” “It will be a golden age for America,” Trump declared.
The US president said he was “putting America first”. “With today’s actions, we are protecting our great farmers. They have been hurt by countries all over the world,” he declared.
US stock futures fell immediately after Mr. Trump announced the reciprocal tariffs. S&P 500 futures fell 1.7%, while Nasdaq futures lost nearly 2%. This shows that investors expect Wall Street to fall in the trading session on April 3. The world spot gold price also hit a new high of 3,159 USD per ounce.
In February, Mr. Trump signed a memorandum asking U.S. trade officials to study each country’s trade policies and propose corresponding tariffs. He has recently repeatedly praised April 2 as America’s “liberation day.”
Trump believes that American businesses and people are being harmed by free trade agreements, which cause $3 trillion in imports to flood into the US each year. The trade imbalance between the US and the world has caused a $1.2 trillion goods deficit here.
In addition to addressing trade issues, he sees import tariffs as a tool to curb drug smuggling and illegal immigration into the United States, increase government revenue and boost domestic manufacturing.
Trump’s policies have escalated global trade tensions. Canada, China and Europe have all announced retaliatory measures against the US. US investment, consumer and business confidence has also plummeted. Economists warn that protectionist trade policies will only increase domestic and global inflation. If Trump were to raise import tariffs by 20%, the average American household would pay an additional $3,400 a year, according to a Yale University study.
