Trump imposes 10% tariff on all imports

President Donald Trump has announced a sweeping trade policy change, imposing a 10% tariff on all imports from every country, effective April 5, 2025.

Additionally, the U.S. will apply higher reciprocal tariffs on specific trading partners, aiming to match approximately half of the tariffs those countries impose on U.S. goods.

For instance, China, which currently levies a 67% tariff on U.S. imports, will face a 34% reciprocal tariff from the U.S.

Trump also introduced a 25% tariff on all automobile imports, further escalating trade tensions.

Trump framed these measures as part of a broader economic protectionism strategy, drawing parallels with the U.S.'s historical reliance on tariffs from 1789 to 1913.

During that period, the U.S. experienced significant economic prosperity, which Trump attributes to tariff-backed policies.

The president proposed using tariff revenue as an alternative to income tax, suggesting that this could replace the Internal Revenue Service (IRS) and reduce the tax burden on American citizens.

Commerce Secretary Howard Lutnick supported this idea, emphasising the potential benefits for American workers and the economy.

These tariffs are part of Trump's broader effort to address what he views as unfair trade practices and to bolster domestic manufacturing.

However, they have sparked concerns about potential retaliation from trading partners and the impact on global trade dynamics.

As the U.S. imposes these tariffs, countries like China, Canada, and the European Union have announced or are considering countermeasures, which could escalate into a full-scale trade war.

The economic implications of these policies remain uncertain, with some analysts warning of increased costs for consumers and potential disruptions to supply chains.