Trump declares state of emergency in US to protect economy

During a speech in the Rose Garden near the White House, President Trump stated that foreign trade and economic practices have created a national emergency. His executive order imposes tariffs aimed at strengthening the US's international economic position and protecting American workers.

A significant and ongoing annual trade deficit in goods has led to the depletion of the country’s manufacturing base, a lack of incentives for expanding advanced domestic production capacities, the disruption of critical supply chains, and the dependency of the US defense-industrial base on foreign adversaries.

President Trump is invoking his powers under the International Emergency Economic Powers Act (IEEPA) of 1977 to address the national emergency caused by the large and persistent trade deficit. This deficit has been driven by a lack of reciprocity in trade relations with other nations, as well as harmful policies such as currency manipulation and excessive value-added taxes (VAT) imposed by other countries.

In light of this situation and utilizing his IEEPA powers, President Trump will implement a 10% tariff for all countries. This decision will take effect on April 5, 2025, at 12:01 a.m. Eastern Standard Time.

Additionally, Trump will impose individual reciprocal tariff increases on countries with which the US has the largest trade deficits. All other countries will remain subject to the initial base tariff of 10%. This will come into effect on April 9, 2025, at 12:01 AM Eastern Standard Time.

"These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated," the statement reads.

It is also noted that President Trump refuses to allow the US to be used for the benefit of others and believes that the tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit, deeming this a national emergency.

"Studies have repeatedly shown that tariffs can be an effective tool for reducing or eliminating threats that impair US national security and achieving economic and strategic objectives," the White House information bulletin states.

Tariff war of the US

On Tuesday, April 2, US President Donald Trump signed an executive order introducing reciprocal import tariffs for all countries worldwide.

Specifically, from midnight on April 2 to 3, the US will impose a 25% tariff on all foreign-made vehicles.

A separate tariff of 10% will be introduced on imports from Ukraine.

In response to this decision, the European Union has expressed readiness to close its market to American goods.