In a major escalation of the global trade war, U.S. President Donald Trump on Wednesday announced a comprehensive new tariff regime that he described as a “declaration of economic independence” for the United States. Speaking from the Rose Garden of the White House, Trump said his administration will impose a 25% tariff on all foreign-made automobiles, effective midnight Thursday, in what could be the most significant one-day trade action in recent U.S. history.
Labeling April 2 as “Liberation Day,” Trump launched into a fiery speech, blaming decades of what he described as economic exploitation by foreign nations for undermining American industry. Holding up a report on global trade practices, Trump accused U.S. trading partners of “stealing our intellectual property, adopting unfair rules, and creating filthy pollution havens.”
He claimed the country had been “looted, pillaged, raped, and plundered” economically, and promised that the era of one-sided trade was over.
Broad-Based Tariff Hike
Trump also announced a 10% baseline tariff on all trading partners, alongside specific reciprocal tariffs on two dozen countries. The list includes:
- China: 34%
- Vietnam: 46%
- Cambodia: 49%
- India: 26%
- South Korea: 25%
- Taiwan: 32%
- Japan: 24%
- Thailand: 36%
- Bangladesh: 37%
- Switzerland: 31%
- Indonesia: 32%
- Malaysia: 24%
- South Africa: 30%
- Pakistan: 29%
- Sri Lanka: 44%
- European Union: 20%
- United Kingdom, Brazil, Chile, Turkey, Singapore, Australia, Colombia: 10%
- Israel, Philippines: 17%
Despite this long list, Canada was not explicitly mentioned, leaving uncertainty about whether vehicles or goods made in Canada are exempt from the new tariffs. Trump avoided answering whether Canada or other North American partners would be spared, intensifying speculation and concern north of the border.
Canada’s Response
Reacting swiftly to the developments, Prime Minister Mark Carney paused his federal election campaign and convened emergency closed-door meetings with his U.S.-relations and national security teams. Industry leaders and political figures across Canada warned of significant fallout if Canadian exports are caught in the new tariff net, particularly in the auto sector.
Trump had already drawn attention earlier by singling out Canadian dairy tariffs, saying duties “get up to 275-300%,” in another jab at long-standing trade tensions with Ottawa.
Economic and Political Fallout
“This is one of the most important days in American history,” Trump declared, calling the policy shift long overdue and essential for restoring America’s manufacturing dominance. Trump emphasized that the U.S. would now charge “approximately half” of what other countries charge on U.S. exports as part of his reciprocal approach.
Commerce Secretary Howard Lutnick joined Trump in holding a placard showing tariff rates imposed on U.S. goods by other countries and the new reciprocal rates announced Wednesday.
While Trump and his advisors view these sweeping trade actions as a way to force companies to retool supply chains back to the U.S., critics — including Canadian officials and economists — argue that such drastic measures risk triggering supply shocks, higher consumer prices, and retaliation from global trading partners.
With no official exemption for Canada and a 25% auto tariff looming, the pressure is now squarely on the Canadian government to secure its economic interests in an increasingly protectionist landscape.