Trump unveils sweeping tariffs in bold economic move

• Donald Trump introduced new tariffs on goods imported to the USA, claiming that he wants to protect the American market in this way.
• The tariff rates for specific countries are to be, among others, 34% for China, 20% for the European Union, 46% for Vietnam, 23% for Japan, and 26% for India.

— For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike — Trump said during a speech in the White House Rose Garden.

— For years, hard working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. With today's action, we are finally going to be able to make America great again - greater than ever before — he declared.

— The 25% tariff will be applied to imported passenger vehicles and light trucks, as well as key automobile parts, with processes to expand tariffs on additional parts if necessary — according to the White House.

According to Donald Trump's announcement, tariffs on China will be 34%, the European Union - 20%, Japan - 24%, the United Kingdom - 10%, Vietnam 46%, India 26%.

He simultaneously announced that the minimum tariff rate for all other countries in the world would be 10%.

A reciprocal tariff is a simple principle in international trade that can be compared to the "eye for an eye" rule. If a country imposes an additional charge, or tariff, on goods from the USA, the United States responds in kind by imposing a similar charge on goods from that country. In this case, a reciprocal tariff is half of the total tariff that the USA imposes on imports from a given country. For example, if Vietnam has a 90% tariff, the reciprocal tariff is 90% divided in half, which is 46%. This means that Vietnam, when exporting goods to the USA, will pay a 90% tariff, of which 46% is the charge imposed in response to what Vietnam does with American products.

Donald Trump introduced such tariffs to protect the American market and motivate other countries to lower their fees on products from the USA. Sri Lanka was also subject to high charges - an 88% tariff will translate to a 44% reciprocal tariff. Cambodia will face a 97% tariff, of which 49% is a reciprocal tariff. Bangladesh was charged a 74% tariff, resulting in a 37% reciprocal tariff. China, one of the main trade partners of the USA, received a 67% tariff, of which 34% is a reciprocal tariff. Thailand and Indonesia were subjected to 72% and 64% tariffs, translating to 36% and 32% reciprocal tariffs. South Africa and Pakistan were listed with 60% and 58% tariffs, meaning 30% and 29% reciprocal tariffs. India and South Korea received tariffs of 52% and 50%, respectively, resulting in 26% and 25% reciprocal tariffs. Japan and Malaysia were charged with 46% and 47% tariffs, translating to 24% reciprocal tariffs in both cases. Taiwan will face a 64% tariff, of which 32% is a reciprocal tariff, and Switzerland - 61%, with 31% reciprocal tariff. The European Union was subjected to a 39% tariff, which means a 20% reciprocal tariff. Israel and the Philippines received 33% and 34% tariffs, translating to 17% reciprocal tariffs. Meanwhile, countries like the United Kingdom, Brazil, Singapore, Chile, Australia, Turkey, and Colombia were burdened with a uniform 10% tariff, entirely constituting a reciprocal tariff. These changes in trade policy aim to protect the American market and level the playing field with other countries.

— I think in other words, they charge us, we charge them, we charge them less. So how can anybody be upset? — concluded Donald Trump while presenting a graph showing how tariffs will look for individual countries and trade partners.

The President announced that the United States would use the money generated from tariffs to lower the federal taxes and reduce national debt.

Trump stated that today's actions will "make America great again." — Jobs and factories will come roaring back into our country, and you see it happening already. We will supercharge our domestic industrial base — he said. Trump declared the coming years as "the golden age of America."

— To all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be calling to ask for exemptions from these tariffs, I say, terminate your own tariffs, drop your barriers — Trump said.