The White House announced on April 2, 2025, that President Donald J. Trump has declared a national emergency citing foreign trade practices as a threat to the United States' economy and security. In response, Trump imposed tariffs aimed at countering these practices and reinforcing the U.S. manufacturing sector.
"President Donald J. Trump declared that foreign trade and economic practices have created a national emergency," the White House stated. This decision uses the powers granted by the International Emergency Economic Powers Act of 1977, which will impose a general 10% tariff on goods from all countries starting April 5. Additional tariffs will target countries with significant trade deficits with the U.S., beginning April 9.
The President's invocation of the 1977 act stems from "the absence of reciprocity in our trade relationships and other harmful policies like currency manipulation and exorbitant value-added taxes (VAT) perpetuated by other countries." This action allows for the potential adjustment of tariffs based on the trading actions and retaliations by other countries, as detailed in the order.
Specific exemptions have been outlined, stipulating that several goods will not be subjected to these new tariffs, including "steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs" and several other materials. Moreover, the United States-Mexico-Canada Agreement (USMCA) continues to influence tariffs applicable to goods from Canada and Mexico, with certain conditions leading to varying tariff rates.
In Trump's view, the tariffs are pivotal for maintaining the U.S. competitive edge and supporting the national economy. "President Trump refuses to let the United States be taken advantage of and believes that tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit—this is an emergency." As part of this effort, the administration highlights the impact of past trade policies on U.S. manufacturing and national security, emphasizing a decline in its global manufacturing output share.
The President's reciprocal trade agenda includes addressing disparities in tariffs and non-tariff barriers imposed by other countries. Countries such as China, India, and Argentina are noted for their practices contributing to trade imbalances, impeding U.S. market access, and favoring local industries. The tariffs seek to inspire a change in these practices, with the aim of re-shoring production and driving domestic economic growth.
In support of the tariffs, multiple studies and analyses have been cited. A 2024 study reported that previous tariffs under President Trump "strengthened the U.S. economy," and a U.S. International Trade Commission report highlighted the positive effects on U.S. production. Additionally, the tariffs' lack of significant inflation impact is corroborated by former Biden Treasury Secretary Janet Yellen's remarks.
Trump's administration asserts that these measures pave the way for a "new golden age" of American manufacturing and industrial growth, consistent with his broader economic plans encompassing energy competitiveness and deregulation initiatives.