President Donald Trump declared a national emergency to unveil his list of reciprocal tariffs on some of America’s biggest trade partners.

This act by the White House marks the biggest upheaval in global trade in decades, which Trump claims is being done to ‘strengthen the international economic position of the United States’ and ‘protect American workers.’

What Happened: On Wednesday, Trump invoked his authority under the International Emergency Economic Powers Act of 1977 to declare a state of emergency and enact reciprocal tariffs to address ‘the large and persistent trade deficit’ experienced by the United States.

A White House ‘Fact Sheet’ accompanying the President’s announcement lays out the list of tariffs imposed on imports into the U.S. and the countries that are being subjected to them, as Trump emphasizes the golden rule of trade: ‘Treat us like we treat you.’

Here’s a complete rundown of what the fact sheet entails, with a spotlight on key points and what they each mean for the U.S., as well as the global economy.

See Also: Trump’s ‘Reciprocal Tariff’ Plan Hits Market Confidence As Dow Futures Drops Over 830 Points

1. Address Trade Deficit & Unfair Practices

The fact sheet states that the United States suffered a $1.2 trillion trade deficit in 2024, which was largely ‘ignored by prior leadership.’ Going on to state that such persistently high deficit levels year after year are an unsustainable crisis and need to be addressed.

The countries that drive this deficit include China at $270 billion, and Mexico at $160 billion, followed by Vietnam, Ireland, and Germany at $110 billion, $80 billion, and $76 billion, respectively.

It holds the pernicious economic policies and unfair trade practices of its largest partners responsible for this, highlighting the tariffs charged by countries such as India and Turkey, going as high as 60% on Apples, 70% on passenger car imports, and 80% on rice husks.

The White House says American companies are charged nearly $200 billion in value-added taxes each year by other countries, while the U.S. itself taxes little to nothing, with tariffs mostly ranging from 2.5% to 3.3%.

It further sheds light on several non-tariff barriers that leave U.S.-based companies at a disadvantage, such as Brazil and Vietnam’s restrictions on remanufactured goods.

2. Hollowed Out Manufacturing Base & Reshoring

The fact sheet holds the country’s long-standing free-for-all trade policy responsible for the erosion of its manufacturing base. It highlights the fact that American manufacturing as a share of global output stood at 28.4% in 2001 but now stands at 17.4%.

In addition to the millions of jobs lost to this shift over the decades, the administration believes that it has left U.S. supply chains vulnerable to global shocks.

The new trade policy emphasizes the importance of reshoring manufacturing, especially in critical sectors such as defense, batteries, microelectronics, and bio-manufacturing.

3. Blanket Import Tariffs, Reciprocal Tariffs & Exemptions

To address these challenges and more, the President used his IEEPA authority to impose a blanket 10% tariff on all goods imported into the U.S. from across the world. This is set to go into effect starting from the 5th of April 2025.

Besides this, several reciprocal tariffs are being imposed on countries with which the United States has the highest trade deficit, which is in addition to the 10% baseline. The reciprocal tariffs are set to take effect on the 9th of April 2025. For Canada and Mexico, the existing IEEPA order around fentanyl and immigration remains in effect and is unchanged.

The fact sheet outlines several products exempted from these tariffs, such as copper, pharmaceuticals, and lumber articles, alongside bullion, energy, and minerals unavailable in the United States. Steel, aluminum, auto, and auto parts are exempted, as they are part of a separate tariff order that remains in force.

Here’s the full list of reciprocal tariffs being imposed on America’s largest trading partners,

What It Means: The tariffs do have broad implications on the U.S. and global markets, and in addition to a rout in global equity markets, analysts expect it to fuel inflation, while further increasing the risks of a recession.

America’s trading partners are expected to respond with countermeasures, which could altogether plunge the global economy into a recession.

1. Trade With The United States: A ‘Privilege’

The President unequivocally states ‘Access to the American market is a privilege, not a right’ and that the United States will no longer ‘put itself last on matters of international trade.’

According to analysts, however, this move is not without its downsides, as clamping down on the U.S. market privileges of other countries could hurt America’s biggest privilege of all, ‘The Dollar Privilege‘. Something that allowed it to run massive deficits and wield unprecedented geopolitical power over the decades.

2. Global Recession Risk

Early last month, JP Morgan Research suggested that the risk of a global recession taking hold this year was at 40%, up from 30% at the start of 2025. The analysis laid the blame squarely on the ongoing tariff war and the uncertainties surrounding the same, resulting in negative sentiments.

Now with the tariffs in place, analysts at JP Morgan are all but certain that “these policies, if sustained, would likely push the U.S. and global economy into recession this year.”

They further add that this is essentially a $660 billion tax on American consumers, ‘the largest tax increase in recent memory by a longshot.’

3. Countermeasures By Trading Partners

Major U.S. trade partners have begun responding to the tariffs, starting with a Chinese Commerce Ministry spokesperson calling it ‘typical unilateral bullying’ before urging the U.S. to ‘immediately cancel its unilateral tariff measures.’

Meanwhile, Europe joined in on condemning the tariffs, with Italian Prime Minister Giorgia Meloni calling the 20% tariffs imposed on the European Union ‘wrong,’ followed by the Irish Taoiseach Micheál Martin, who referred to this decision as ‘Extremely Unsettling.’

The Indian Commerce Ministry said that it was still analyzing the impact of the 26% reciprocal tariff, with a senior official quoted as saying ‘a mixed bag and not a setback for India.’ The Canadian Prime Minister Mark Carney, on the other hand, vowed to ‘act with purpose and with force.’

Image via Shutterstock

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