The president also announced more significant tariffs for who it says are the country’s least reciprocal trading partners.
President Donald Trump on Wednesday announced a 10% baseline tariff on all U.S. imports, and more significant tariffs applied to the United States’ least reciprocal trading partners.
“Structural asymmetries have driven the large and persistent annual U.S. goods trade deficit,” the president argues in the executive order detailing the tariff actions. “Even for countries with which the United States may enjoy an occasional bilateral trade surplus, the accumulation of tariff and non-tariff barriers on U.S. exports may make that surplus smaller than it would have been without such barriers. Permitting these asymmetries to continue is not sustainable in today’s economic and geopolitical environment because of the effect they have on U.S. domestic production.
“A nation’s ability to produce domestically is the bedrock of its national and economic security.”
Indeed, the U.S. trade deficit in goods surged to $1.2 trillion last year. In 2024, America’s largest bilateral trade deficits came from China ($295.4), the European Union ($235.6), Mexico ($171.8), and Vietnam ($123.5). These numbers are the culmination of decades of goods trade deficits run by the United States, which have coincided with the decline in U.S. production of everything from consumer goods to advanced technology products to personal protective equipment.
Alliance for American Manufacturing (AAM) President Scott Paul praised the announcement in a statement:
“Today’s trade action prioritizes domestic manufacturers and America’s workers. These hardworking men and women have seen unfair trade cut the ground from beneath their feet for decades. They deserve a fighting chance. Our workers can out-compete anyone in the world, but they need a level playing field to do it. This trade reset is a necessary step in the right direction.”
A few things of note:
1. The executive order explicitly states that retaliation by a trading partner to the tariffs may trigger escalation, as may worsening domestic “manufacturing capacity and output.” The order also says that steps taken “to remedy non-reciprocal trade arrangements and align sufficiently with the United States on economic and national security matters” may decrease duties.
2. The order’s 10% baseline tariff order won’t impact Canada and Mexico’s USMCA-compliant goods. Those countries are still subject to Trump administration plans for 25% tariffs over complaints about fentanyl trafficking and illegal immigration.
3. The 34% tariff the order outlines on Chinese imports will be in addition to the previous 20% tariffs the Trump administration has levied on that country since assuming office.
4. The administration previously announced a 25% tariff on all auto imports to effect on April 3; those take effect at midnight tonight.
AAM has long advocated for a strong tariff action to be paired with equally substantial investments in domestic industrial capacity. We made the case for them in comments to the office of the United States Trade Representative in March when that office sought public input on a reciprocal tariff program, urging the administration to “proceed with a comprehensive strategy that includes enforcement, addressing loopholes, eradicating forced labor, and continuing to make strategic investments in critical sectors.”
We continue to make the same case today.
“We must match today’s trade action with comprehensive policies and incentives that spur investment in U.S. factories and supply chains, said AAM’s Paul in his statement. “There is still much more work to do to strengthen our trade laws and address critical sectors.”
Read the entire statement here.