The new highly anticipated price cycle of President Donald Trump is there, and this could mean a price increase on a range of goods on which Americans count.
Trump on Wednesday signed an executive decree announcing reciprocal prices on all countries that have placed prices on American products. These prices come across the so-called “Liberation Day” of Trump, that the president boasts for weeks as the day when his vast commercial plan would drop.
“On April 2, 2025, we will forever remember when the day when American industry is reborn, the day of destiny of America was recovered and the day we started to make America rich,” said Trump in Wednesday remarks.
The motivation of the reciprocal prices: “They do it to us, and we do it,” said Trump. “Very simple. I cannot become easier than that.” He added that all prices would have a 10%reference rate rate.
Trump said in his remarks that he accused countries “about half” of what these countries billed in the United States. Trump said this would represent a rate of 32% on China goods, a tariff of 20% for the European Union, a rate of 32% for Taiwan and a tariff of 26% for India.
Trump also announced a 25% rate on all imports of cars in the United States. He did not mention any new price in Canada or Mexico during his remarks.
In the weeks preceding on April 2, Trump reported a range of prices which he planned to implement. They included a 25% price on the goods of Canada and Mexico, a price of 25% on all imports of cars and cars in the United States, prices on agricultural goods and reciprocal prices on all countries that have placed prices on American products. A 25% rate on steel and aluminum imports is already in force.
Reciprocal prices are the widest category, and Trump previously indicated that there would be “flexibility” in terms of the scope of the prices that he would end up imposing on these countries.
Before the announcement of Trump’s price, the White House wrote in a press release Wednesday morning that prices “will level the rules of the game for workers and American companies”. However, markets and consumers have already felt financial strains due to continuous uncertainty with Trump’s commercial plans.
“When the president has no clear strategy or direction, it is extremely difficult for companies in particular and consumers, to plan the future, and that is why you see so much uncertainty on the consumer market at the moment and so much uncertainty in the business community,” said Alex Jacquez, a national council of former president Joe Biden, Alex Jacquez, a press call on Tuesday.
The United States is likely to see prices for reprisal from the countries affected following Trump’s announcement. The Prime Minister of Canada, Justin Trudeau, previously said that he would place prices on American products until Trump prices are withdrawn.
The United Auto Workers Union previously praised the president’s plan to place a 25% rate on all cars and car parts imported in the United States, saying that it would bring more jobs to the American automotive industry.
“These prices are a major step in the right direction for car workers and blue -collar communities across the country,” said UAW president Shawn Fain in a statement.
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