Washington, Apr. 2, (dpa/GNA) – US President Donald Trump announced a round of sweeping “reciprocal tariffs” on countries around the world in a speech in the White House Rose Garden on Wednesday.
“We will charge them approximately half what they are or have been charging us,” he said, as he listed import tariffs to the US for certain areas. The European Union will face a 20% tariff. Japan must pay 24%, China 34%.
“This is one of the most important days, in my opinion, in American history. It is our declaration of economic independence. Now it is our turn to prosper,” he added.
He said the US was “standing up for the American worker” with these new steps.
“Our country and its tax payers have been ripped off for 50 years but it is not going to happen anymore,” Trump added.
New ‘golden era’ heralded
He claimed that the US was entering a new “golden era.”
Trump had touted Wednesday as “a day of liberation.”
The imposition of reciprocal tariffs means, in principle, that the US will raise its tariffs in proportion to where they currently charge less than their trading partners.
Since moving back into the White House, Trump has been relying on tariffs on a large scale, as he also did in his first term in office.
He has already imposed tariffs on all aluminium and steel imports, introduced tariffs of 25% on imported cars and car parts, introduced increased tariffs on all goods from China and is targeting its neighbours Canada and Mexico.
The car tariffs in particular are hitting Europe and the German market hard.
Tariffs have consequences for consumers
An import duty works similarly to a tax. It has to be paid by the importing company – in this case, by companies in the US.
It is likely that the importing companies will not simply absorb the higher costs themselves. They are likely to pass them on to consumers, causing prices to rise and potentially fuelling inflation.
Trump’s goal is to prevent US companies from importing products from abroad. In the long term, this should promote the US as a production location.
Trump claimed that a number of key US and foreign companies have pledged to build new factories in the United States in the coming years.
He promised a total of $6 trillion in investment in factories in the United States.
Counter-tariffs expected
Since counter-tariffs are expected and exporting companies are likely to suffer a decline in sales, this could lead to a decline in production and possible job cuts, which can put a strain on the economy as a whole. An escalating trade conflict between the US and the EU will therefore also have a significant impact on European consumers.
Executive Director of Retail and Digital Banking at Access Bank Ghana, Pearl Nkrumah, speaking at the event, said the initiative started in Ghana over 10 years ago following its launch at the Bank’s headquarters in Nigeria.
“This funding will allow me to invest in machinery, raw materials, and expand my team. I also remain committed to my annual donation to orphanages, and this grant will ensure I can continue giving back to the community,” she shared.
