Reactions pour in on Trump’s reciprocal tariffs

As expected, President Trump on Wednesday signed an Executive Order, entitled “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,” in which the United States will institute reciprocal tariffs on countries throughout the world.

In comments at the White House’s Rose Garden, Trump described the measure as a “declaration of economic independence,” noting that for years Americans were forced to sit on the sidelines as other nations got rich and powerful, at the expense of the U.S., and stated that it is now the U.S.’s turn to prosper and use trillions of dollars to reduce taxes and pay down the country’s national debt.

“We will supercharge our domestic industrial base,” he said. “We will pry open foreign markets and break down foreign trade barriers, and ultimately, more production at home will mean stronger competition and lower prices for consumers. This will be, indeed, the golden age of America. It's coming back.”

In his comments, Trump said that there will be a minimum across-the-board baseline 10% reciprocal tariff placed on U.S. trading partners importing goods into the U.S., with the exception of goods which are compliant with the USMCA (United States-Mexico-Canada) agreement, and non-compliant goods, as previously announced. Those will continue to be charged at 25%. The 10% tariff will take effect at 12:01 a.m. ET on Saturday.

In addition to the 10% baseline tariff, the President said that the U.S. will implement tariffs on nearly 60 U.S. trading partners ranging between 10%-to-50%, and calculated at half the rate foreign nations impose on U.S. exports. As an example, he stated that China will pay a 34% tariff, with the European Union paying 20%, Taiwan paying 32%, Vietnam paying 46%, and Japan paying 46%, among others.

Reactions

Mirza Baig, global business director at UK-based LTS Global Solutions:

“Undoubtedly the current pandemonium around the imposition of tariffs will result in short term market volatility, however it’s only once the dust settles that we can gauge the level of fallout from prolonged tariff disputes. If history is any indicator, these measures will likely prompt a further tit-for-tat retaliatory response from major trading partners on top of what has already been implemented, further disrupting global trade and as a result creating additional challenges for businesses reliant on international markets.”

Ronald Kleijwegt, CEO at Vinturas, a global supply chain collaboration network focused on automative supply chains:

“With an added 25% levy placed on all vehicles and parts shipped to the U.S., manufacturers and OEMs are being forced to absorb new costs, or seek alternative sourcing strategies. Supply chains will prioritize trade partners least impacted by protectionist measures, likely pivot to alternative manufacturing hubs, and move production closer to demand centers, but this will take time and investment. But in doing so, businesses can get tied up in red tape in unfamiliar markets, and struggle to keep up with differing cross-border and product compliance regulations. This leaves more room for human error, fraud and data breaches, product seizures and lost cargo, should it all go wrong.”

Ajoy Krishnamoorthy, CEO at inventory management firm Cin7: 

“The one certainty in the coming weeks is uncertainty. The market likely won’t immediately grasp the full impact of the new trade arrangements. What we do know is this: if a business is sourcing goods from countries affected by tariffs, costs are almost certainly going to rise. As a result, nearly every supplier will adjust their pricing, driven by the fear of falling behind if they don’t. If I can offer any advice to restless hands, it’s to focus on getting clarity before acting. Utilize advanced tools like demand forecasting and cash flow prediction to gain greater control over purchasing decisions and supplier timelines. With the right technologies, you can make informed, data-driven choices that align your inventory with actual demand — and pinpoint opportunities to diversify your supplier network to prevent shipping delays.”

David French, NRF vp of government affairs:

“While leaders in Washington may not care about higher prices, hardworking American families do. Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer. Tariffs will not be paid by foreign countries or suppliers. Even more so, the immediate implementation of these tariffs is a massive undertaking and requires both advance notice and substantial preparation by the millions of U.S. businesses that will be directly impacted. We encourage President Trump to hold trading partners accountable and restore fairness for American businesses without creating economic uncertainty and higher prices for American families.”

Jay Timmons, National Association of Manufacturers president:

“The stakes for manufacturers could not be higher. Many manufacturers in the United States already operate with thin margins. The high costs of new tariffs threaten investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations and lead as the preeminent manufacturing superpower.”

Chinese Commerce Ministry:

Tariffs “do not comply with international trade rules and seriously harm the legitimate rights and interests of the relevant parties. The U.S. claims to have suffered losses in international trade, using so-called 'reciprocity' as an excuse to raise tariffs on all trade partners.”

With reporting from Logistics Management Editor Jeff Berman

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