Trump Announces Sweeping Tariffs to Reshape U.S. Economy and Global Trade Order

On April 2, 2025, former President Donald Trump, speaking from the Rose Garden, signed an executive order that instituted a range of 'reciprocal tariffs' on imports. The new measures, which add to existing tariffs on cars, steel, and aluminum – along with a forthcoming 25% tariff on all auto imports – impose significant duties: 34% on goods from China, 35% on products from Vietnam, 32% on items from Taiwan, and 20% on goods from the European Union. Trump promoted the move as a key strategy to reduce taxes, pay down national debt, and rebalance the trade order, calling the initiative “Liberation Day.”

The announcement marks one of the most substantial increases in U.S. trade barriers in a century. Market analysts and business leaders have expressed concerns that the heightened tariffs could lead to increased economic uncertainty, shaken investor confidence, and potential inflationary pressures, while international partners continue to scrutinize the broader global economic implications of the policy shift.