Trump announces 20% tariffs on the European Union: "It's our declaration of economic independence."

Washington"My fellow Americans, today is the day of liberation we have long awaited. April 2nd, 2025, will always be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day the making of America rich again began," the president launched into "reciprocal" tariffs for a long list of countries around the world. Shortly after, the president began announcing the percentages for each country as if he were reading lottery results: 20% for the European Union, 10% for the United Kingdom, 34% for China, 46% for Japan. And so he went with a series of countries, listing them amid jokes, comments about foreign leaders, and praise for his own collaborators.

For countries not on the blacklist, Trump announced a 10% base tax on all imports. "It is our declaration of economic independence for all the years that the American working class has been forced to sit on the sidelines while other nations have empowered and enriched themselves at our expense," Trump said, although the first to suffer from the inflationary effect that, according to most economists, will result from the tariffs.

Following the announcement, the White House sent a statement clarifying the application of the tariffs. The general base of 10% will be applied starting at midnight on Saturday, April 5, and "the higher, more personalized reciprocal tariff" will take effect starting at midnight on April 9.

The president held up a giant cardboard table showing all the tariffs that other countries are supposedly charging the United States and those that the country will now apply to its imports. Thus, along with the 20% that will be levied on goods from the European Union, he wrote 39%. According to the same table, the criteria for which is unknown, China collects 64% of tariffs from the US. "This is not completely reciprocal, it's more or less reciprocal," Trump insisted, repeating his new trade slogan: "If you don't want to pay tariffs, then produce in America." As he cleared the table, the president also announced the implementation of 25% tariffs on all imported vehicles.

The president's plan is simple: raise a tariff wall against the world to encourage the country's reindustrialization, despite the higher cost of living that the measure will cause for American families. Before beginning to recite the rosary of tariffs, Trump had also warned that nations that "have treated" the US badly would have their tariffs calculated "in total, including non-monetary barriers." The US president has grown weary of saying that the EU has treated the US unfairly and taken advantage; therefore, it remains to be seen whether VAT will be added to the 20% tax or some other additional measure.

"We cannot pay for the deficits of other countries, like Canada and Mexico," the president said. "We must take care of ourselves and we must take care of our people first." The tycoon gave some examples of the "injustices" the United States has suffered in trade policies and practically listed one by one all those who, for decades, have been its closest trading partners until now: the European Union, Canada, South Korea, the United Kingdom, China, Japan, and India.

He also reviewed history and asserted that the 1929 Crash "would never have happened if they had maintained a tariff policy." In reality, the start of the Great Depression in the United States had nothing to do with tariffs, but with the stock market bubble that was created during the 1920s.

Trump has brought a Detroit auto factory worker onto the stage as a demonstration of how, supposedly. The man in question, dressed in a reflective work vest, recalled seeing "factory after factory close" in his home state of Michigan.

The 'Dirty 15'

The "day of liberation" had begun with the world holding its breath as it turned its gaze, once again, toward Washington. The White House had not provided any further details about what to expect from the tariffs before the announcement Wednesday afternoon. Once again, since Trump returned to the Oval Office, the only thing guaranteed was unpredictability. Before going into effect, the tariffs had been taking over the streets of the capital for some time. In the city center, bus shelters feature advertisements paid for by the Canadian government that read: "Tariffs are taxes on the American working class."

The new phase of Trump's trade war against the world is based on the Trumpian premise that it is necessary to punish nations that have supposedly taken advantage of the United States with higher trade tariffs than those applied by the country itself. The Republican administration has even created a kind of blacklist that it has dubbed the 15 gross (15 dirty, in English) referring to the 15% of countries that contribute the most to the United States' trade deficit and will therefore be most affected. Treasury Secretary Scott Bessent mentioned this last week on Fox Business, but he didn't specify which nations were in question. According to the calculations Wall Street Journal, the 15 gross These would be: China, the European Union, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia, and South Africa.

This Wednesday also marked the expiration of the one-month truce that Washington had granted to the 25% tariffs on products imported within the USMCA. The White House reported in an illuminating note that the executive order imposing these tariffs as a result of immigration and fentanyl remains in effect, in addition to stating that "goods that comply with the USMCA will continue to have a 0% tariff," so agricultural products purchased from these countries will continue to not see them.

The erratic policy followed by the Trump administration, with exceptions and truces on other existing tariffs, now raises the question of whether the tycoon will again postpone or reverse the new taxes on his trading partners. Mexico and Canada have already seen the president delay the implementation of tariffs twice: the first time he did so at the last minute, just before the 25% tariffs went into effect; the second time he granted another month of grace just two days after imposing the taxes.

The tariffs on Canadian and Mexican imports alone are already projecting higher prices for consumers. Despite even acknowledging that they will cause a "disruption" in the US economy, Trump continues to defend his trade policy as bringing wealth to the country. Trump's plan, on the surface, is simple: impose high taxes on imports to incentivize the country's reindustrialization, which will return the United States to its "golden age." So far, the only effect seen from the president's tariff policy is Wall Street opening lower every day, while old trading partners are preparing to respond to themTrump's threat has caused Asia, Japan, South Korea, and China to overcome historical differences and join forces to counter the blow, according to Chinese media.

The other collateral damage of Trump's trade war is that it seems that the patience of some Republican members of Congress, who until now seemed willing to bend to the president's will, is running out. On Tuesday, Republican senators were considering joining Democrats in opposing the president's tariffs on Canadian imports. The resolution, proposed by Democratic Senator Tim Kaine of Virginia, would end the emergency order Trump uses to justify tariffs against Canada, citing the flow of fentanyl entering the United States across the northern border.

Market nervousness on the eve of D-Day has only intensified now that the moment has arrived. On Wednesday, the S&P 500 opened lower, while gold prices (a safe haven in uncertain times) rose again, approaching all-time highs. Smaller US companies also suffered sharp declines in their stocks amid fears of a possible slowdown in the US economy.