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On April 2, USA President Donald Trump signed an executive order imposing countervailing import tariffs on dozens of economies. Vietnam is among the countries subject to the highest tariff rate, reaching up to 46%, second only to China at 34%.
Meanwhile, countries such as the UK, Brazil, and Singapore face a 10% tariff, whereas the EU, Malaysia, Japan, South Korea, and India are subjected to rates ranging from 20% to 26%.
This executive order will take effect on April 9, aiming to counterbalance tariffs imposed by other nations on USA goods. President Trump asserted that this move is part of a strategy to protect the USA economy, reduce trade imbalances, and promote domestic manufacturing. He also emphasized that the USA is only imposing tariffs at half the rate levied by other countries on American goods, though he did not provide details on how these calculations were made.
In addition to countervailing tariffs, starting April 5, all imports into the USA will be subject to a general tariff of 10%. Subsequently, from April 9 onward, major trading partners will face higher tariff rates according to the White House’s published tariff schedule.
In a speech at the White House, President Trump hailed the new tariff policy as a “declaration of America’s economic independence,” claiming it would bring businesses and factories back to the USA, create jobs, and lower prices by boosting domestic production.
However, the policy has also rattled financial markets. Immediately following the announcement, S&P 500 futures dropped 1.7%, while Nasdaq futures lost nearly 2%, reflecting investors’ concerns over the negative impact of import tariffs.
Experts warn that the USA tariff hike could escalate trade tensions, as countries like Canada, China, and the European Union have already vowed to retaliate. They also fear that such protectionist policies may drive inflation higher, increasing consumer costs for Americans. According to a Yale University study, if the USA raises import tariffs by another 20%, the average American household could end up paying an additional $3,400 per year.
Beyond trade considerations, President Trump argued that import tariffs would help curb illicit smuggling and illegal immigration while increasing government revenue. Nevertheless, these measures remain highly controversial and could have far-reaching consequences for the global economy.
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