WASHINGTON – Markets and business owners across the US and around the world were caught up in Thursday after cleaning and sudden tariff announcements that President Donald Trump is punishing many countries where US importers are heavily dependent on, experts say.
US Stocks It’s falling sharplyposting its worst day drop since June 2020, financial media reported on Thursday’s closing bell. Business groups issued criticism, experts predicted an increase in household spending, and even Republican senators pushed legislation to increase Congressional power over tariffs.
Trump announced tariffs on Wednesday at the White House Rose Garden event, which was called “Liberation Day,” where he told the crowd that his trading partners and allies “have tore apart the dreams of a once beautiful America.”
His answer: “A historic executive order enacting mutual tariffs on countries around the world. It means they do it to us, and we do it to them. It’s very easy.”
But the economist says new US tariffs Trump revealed on Wednesday – Illustrated explanation On a large display table, as Trump said in his remarks, do not match taxes in one other country.
Trump held a chart in his hand claiming to list other countries’ taxes on American imports.
But that was wrong.
Chart problems
As Chart said, Vietnam does not charge 90% tariffs on American imports. Rather, the average price for imported US goods in 2023 was 9.4%. According to To the World Trade Organization.
“The actual calculations (distributed by the White House) do not take into account the tariffs of other countries,” said Brad Sesser, a senior fellow in World Trade at the Council of Foreign Relations, a think tank focusing on international issues.
In other words, Setser told States Newsroom Thursday.
So, what does that mean? And why did the President’s chart say the US would charge a 46% tax on all profits imported from Vietnam?
Vietnam is a small country, but is a competitive exporter, especially in broadcasting equipment, microchips and computers. And the US is a big customer.
In 2023, the US imported $118 billion in goods from Vietnam, while Vietnam imported about $9.6 billion in US products that year. According to A trade data project with roots in MIT, an observatory of economic complexity.
The White House claimed on the chart that Vietnam is applying 90% tariffs to the US. In fact, that percentage is roughly the amount of the US trade deficit divided by the amount the US imports from the country. So, if you divide it by $12 billion to $100 billion = $110 billion, then it’s about 91%.
Trump said he was “kind” and would give trading partners a “discount” tariff fee of about half.
“So Vietnam was hit by a huge tariff, and it’s literally very simple,” Sesser said.
Economists and journalists took it quickly Social Media I doubt the dazzling inaccuracy.
“Bomb” tariff
Jack Chan, a political science professor who runs the Trade War Institute at the University of Kansas, said the new fee would be a “bomb” of US allies and trading partners.
Vietnam was about to come out of Trump’s announcement in March Cutting Zhang didn’t work with US imports and tax collections that signed “large purchase agreements.”
Historically, the country has negotiated tariffs on each product in its “hard” lectures, Zhang said.
“You know, ‘You reduce tariffs on your own. I’ll probably reduce tariffs on other things.” And it negates this kind of lazy, envelope type calculation based on the trade deficit.
Currently, European Union products are 20%, Japan’s new tax rate is 24%, and South Korea’s 25%, all important US allies and trading partners. The EU already has it I was threatened If the US does not come to the negotiation table, they will retaliate.
Countries carrying a trade surplus with the US — meaning they will import more American goods than they sell back to the US — did not escape policy as Trump imposed a universal 10% tariff on all countries.
The UK, which operates a trade surplus with the US, charges an average of 3.8% of imported American products in 2023, with 10% tax displayed on items headed to US buyers. Australia said Prime Minister Anthony Albanese called tariffsIt’s totally unfair“We are facing the same situation.
Trump’s information table incorrectly stated that the UK, Australia, and many other countries, including the UK, Australia, including the MacDonald’s Islands, where penguins and seals live, are charging 10% tax on American goods.
“Damage to your people”
Trump did not include Canada or Mexico in his announcement Wednesday.
However, these countries will be subject to a tax of up to 25% on iron, aluminum and other imports enacted by the administration in March after illegal fentanyl and migrants declared a state of immigration across the northern and southern borders.
Additionally, Trump’s 25% foreign automobile tax began on Thursday. Neighboring countries have a major impact on the supply chain of automobiles.
“The US administration should ultimately change courses given future damage to their own people, but I don’t want to give false hope. The president believes what he is doing is the best for the American economy,” Canadian Prime Minister Mark Carney said Thursday. C-Span. Carney said he and Trump agreed to negotiations on the economy and security next month.
The proposed tariffs will increase an average of $2,100 for each American household. analysis It was released on Thursday by the Central Right Tax Foundation, advocating lower taxes.
According to the foundation’s modelling, the average collection of all imports reaches 18.8% compared to 2.5% in 2024.
Many trade and advocacy groups opposed tariffs.
The National Manufacturers Association has urged the Trump administration to “invest in the United States and minimize tariff costs for expanding manufacturers.”
The Central Right Taxpayer Protection Union issued a harsh statement on Thursday. “American consumers and taxpayers should be eager to see this executive go too far,” President David Williams said.
State Newsroom I spoke to the owner of a small business. From all over the country expressed fear about the daily costs of supplies. The owner of an Arizona coffee shop told the news outlet that Trump bought a disposable coffee cup from China for a year last year in anticipation of a trade war.
Trump announced a 34% tax on Chinese imports on Wednesday, with some experts saying that Trump will stack up on the existing 20% tariffs imposed during his first administration maintained by former President Joe Biden.
Senators want more control over tariffs
A bipartisan pair of senators It was introduced On Thursday, what they entitled “The 2025 American Trade Review Act” aims to curb Congressional power over the president’s near-unilateral decisions on US tariffs.
“Inflation and high costs are a threat to the stability and prosperity of American businesses of all sizes, to the farmers and consumers,” said Democrat Sen. Maria Cantwell of Washington on the Senator’s floor. She and Iowa Republican Sen. Chuck Grassley co-host the law.
“We currently live in an interconnected world, a global economy, and with advances in technology and transportation, that world has become even closer. There is a global economy,” Cantwell continued.
The state newsroom sent the White House a tariff information table presented Wednesday and a list of questions about opportunities to respond to criticism.
In a statement, White House spokesman Kush Desai said, “The trillions of historic investment commitments from industry leaders from Apple to Hyundai, Hyundai and TSMC show that the administration is implementing the first agenda of President Trump’s presidential pro-professional, ProWorker America’s First Agenda, tariffs, retirement and the first agenda of America’s Energy.”
“These first American economic policies have brought about historic job, wages and investment growth in his first semester, and everyone from Main Street to Wall Street will once again be successful as President Trump secures the future of our country’s economy,” the statement continued.
Taiwanese mega-semiconductor producer TSMC received $6.6 billion in direct funding from the US and another $5 billion inexpensive loans. analysis By the Council of Foreign Relations. The country announced an additional $100 billion investment in early March.
Trump has announced a 32% tariff on the island nation.
Last updated at 6:46pm, April 3, 2025
