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In a controversial shift in U.S. trade policy, President Donald Trump announced sweeping tariffs aimed at his largest trading partners, set to take effect in early April. The president revealed a 10% universal tariff on all imported goods and "reciprocal tariffs" targeting countries he claims have exploited U.S. trade practices. The universal tariff starts on April 5, while the reciprocal tariffs commence on April 9.
Trump described the day as "liberation day," portraying the tariffs as a corrective measure against decades of unfair trading practices, claiming that countries have "looted" the U.S. during his speech in the Rose Garden. Special exemptions were made for Canada and Mexico due to existing trade agreements. However, tariffs on other countries include a proposed charge of 34% on China and 20% on the EU.
Reactions from international leaders have been swift, with Canadian Prime Minister Mark Carney calling the tariffs "unjustified." Economists warn that these measures could escalate into a trade war, further straining U.S. economic relations and potentially leading to higher consumer prices and job losses.