President Donald J. Trump announced a national emergency focused on foreign trade and economic practices. The declaration includes implementing tariffs to improve the United States' economic position and protect American workers.
The U.S. has faced significant annual trade deficits, which have weakened its manufacturing base, hindered advanced domestic manufacturing growth, disrupted critical supply chains, and made the defense-industrial sector reliant on foreign adversaries. In response, President Trump invoked the International Emergency Economic Powers Act of 1977 (IEEPA) to address the trade deficit, citing issues such as lack of reciprocity, currency manipulation, and high value-added taxes by other countries.
Under IEEPA, a 10% tariff will be imposed on all nations starting April 5, 2025, at 12:01 a.m. EDT. Additionally, countries with the largest trade deficits with the U.S. will face higher reciprocal tariffs beginning April 9, 2025, at 12:01 a.m. EDT. These measures will remain until the trade deficit threat is resolved.
The IEEPA Order includes a modification clause allowing President Trump to adjust tariffs if trading partners retaliate or take steps to correct trade imbalances. Some goods, such as steel, aluminum, autos, copper, pharmaceuticals, semiconductors, lumber, bullion, energy, and minerals not available in the U.S., are exempt from the Reciprocal Tariff.
Existing IEEPA orders on fentanyl and migration remain active for Canada and Mexico, keeping USMCA-compliant goods at a 0% tariff. Non-USMCA goods face a 25% tariff, with non-USMCA energy and potash at 10%. If these orders end, USMCA-compliant goods will continue to have preferential treatment, while others will see a 12% tariff.