03.04.2025 09:13
U.S. President Donald Trump signed a decree that envisions the implementation of reciprocal tariffs against other countries. Trump announced that he would impose reciprocal tariffs on countries including Turkey, with a basic tariff rate of 10%. He also stated that a 25% customs duty on imported cars has come into effect.
U.S. President Trump, in his speech here, described today as the long-awaited "day of liberation," stating, "Our country and taxpayers have been exploited for over 50 years, but this will no longer be allowed." Emphasizing that today is one of the most important days in U.S. history, Trump said, "This is our declaration of economic independence."
"CHRONIC TRADE DEFICITS ARE A GREAT THREAT TO THE COUNTRY"
Trump stated that they would eliminate foreign trade barriers, expressing that this would ultimately mean more domestic production, stronger competition, and lower prices for consumers. Describing chronic trade deficits not as an economic problem but as a national emergency threatening the security of the U.S., Trump emphasized that this is a significant threat to the country.
"MINIMUM BASE TARIFF RATE IS 10 PERCENT"
Trump announced that starting tomorrow, the U.S. would impose reciprocal tariffs on other countries, stating, "We will set the minimum base tariff rate at 10 percent." He also reminded that starting from midnight tonight, a 25 percent customs duty on imported cars would come into effect.
TARIFF RATES RANGE FROM 10 PERCENT TO 50 PERCENT
Under the decree signed by U.S. President Trump, tariffs are expected to be imposed on many of the U.S.'s trade partners. Tariff rates range from 10 percent to 50 percent. In this context, it is planned to impose a 20 percent tariff on the European Union, 34 percent on China, 46 percent on Vietnam, 32 percent on Taiwan, 24 percent on Japan, 26 percent on India, 25 percent on South Korea, 36 percent on Thailand, 31 percent on Switzerland, 32 percent on Indonesia, 24 percent on Malaysia, 49 percent on Cambodia, 30 percent on South Africa, 37 percent on Bangladesh, and 17 percent on Israel. A 10 percent customs duty is expected to be applied to some countries, including Turkey, the United Kingdom, Brazil, Australia, the United Arab Emirates, New Zealand, Egypt, and Saudi Arabia.
TARIFFS WILL REMAIN IN EFFECT UNTIL THE THREAT OF TRADE DEFICIT IS MITIGATED
In a statement from the White House, it was reported that U.S. President Trump is taking measures against the trade deficit caused by policies such as the lack of reciprocity in the country's trade relations, currency manipulation, and high value-added taxes imposed by other countries, using his authority under the International Emergency Economic Powers Act (IEEPA) of 1977.
In this context, it was announced that the 10 percent basic customs duty imposed on all countries would come into effect on April 5, while higher tariff rates specifically determined for countries would come into effect on April 9. The statement emphasized that these tariffs would remain in effect until it is determined that the threat arising from the trade deficit has been eliminated or mitigated.
MERCHANDISE TRADE DEFICIT EXCEEDED 1.2 TRILLION DOLLARS LAST YEAR
It was stated in the announcement that tariffs on Canada and Mexico would remain in effect due to the fentanyl and immigration crisis, and that goods compliant with the U.S.-Mexico-Canada Agreement would continue to be exempt. The announcement indicated that sectoral tariffs announced for products such as steel, aluminum, automobiles, copper, semiconductors, and lumber, as well as energy and certain minerals not found in the U.S., would be exempt from reciprocal tariff arrangements. The announcement pointed out that last year, the U.S. merchandise trade deficit exceeded 1.2 trillion dollars, and that the U.S.'s share of global production, which was 28.4 percent in 2001, has dropped to 17.4 percent in 2023.