In a significant move, President Donald J. Trump declared a national emergency on April 5, 2025, citing large and persistent annual U.S. goods trade deficits as an unusual and extraordinary threat to the national security and economy of the United States.
The declaration was made under the authority granted by the Constitution and the laws of the United States, including the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA).
Trump’s announcement comes in the wake of investigations initiated by his Administration to address the ongoing issues in U.S. trade relationships.
The President highlighted that these trade deficits have suppressed domestic wages, hindered the scaling of advanced domestic manufacturing, and undermined vital supply chains, while making U.S. defense capabilities dependent on foreign adversaries.
He stated that the ongoing trade situation is largely a result of a lack of reciprocity in bilateral trade relationships, as evidenced by disparate tariff rates and myriad non-tariff barriers implemented by U.S. trading partners.
According to Trump, these conditions have led to the hollowing out of the U.S. manufacturing base and have contributed to significant annual trade deficits that reached $1.2 trillion in 2024.
The President’s administration has taken steps over recent years to address these issues, including the signing of the America First Trade Policy Presidential Memorandum and a subsequent memorandum on Reciprocal Trade and Tariffs.
However, Trump emphasized that previous efforts have been largely ineffective, with trading partners blocking multilateral solutions to address these imbalances.
In outlining the history of U.S. trade policy, Trump pointed to a commitment to reciprocity that has not been upheld by many trading partners, resulting in an unbalanced trading relationship.
He reminded Americans that U.S. manufacturing output as a share of global production has sharply declined, dropping from 28.4 percent in 2001 to 17.4 percent in 2023.
The President’s order seeks to rectify trade deficits by imposing an additional ad valorem duty starting at 10 percent on all imports from various trading partners, with rates rising for specific nations as detailed in an accompanying annex.
This policy is designed to counteract what the Trump administration views as unfair trade practices that have contributed to a significant misalignment in global trade flows.
The additional duties will commence on April 5, 2025, with a further increase on selected countries taking effect on April 9, 2025.
Specific import products, however, will be excluded from these new tariffs, including critical goods subject to existing tariffs due to national security concerns.
Moreover, the announcement articulates the necessity of protecting American industries from non-reciprocal tariff barriers and other market distorting policies imposed by foreign governments.
Trump noted that the absence of sufficient domestic manufacturing capacity threatens not only the economy but also national security, especially in advanced industrial sectors crucial for defense.
He highlighted the importance of reinvesting in U.S. manufacturing to ensure military readiness and resilience in supply chains, showcasing the impact of reliance on foreign production.
This recent trade policy shift echoes broader concerns over economic security, especially as the global marketplace continues to evolve amidst geopolitical uncertainties.
In conclusion, President Trump has called upon both public and private sectors to take appropriate actions necessary to strengthen the international economic position of the United States, indicating a renewed focus on revitalizing domestic manufacturing and addressing long-standing trade imbalances.
The series of announcements indicate a pivotal moment in U.S. trade policy that aims to reshape the landscape of international manufacturing and trade, aiming to safeguard the economic interests of the nation amidst growing challenges.
image source from：https://www.whitehouse.gov/presidential-actions/2025/04/regulating-imports-with-a-reciprocal-tariff-to-rectify-trade-practices-that-contribute-to-large-and-persistent-annual-united-states-goods-trade-deficits/
