The President of the United States, Donald Trump, signed today (02.04.2025) 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»The measure imposes new tariffs on imports from various countries with the aim of reducing the U.S. trade deficit.
Details of the measure
The plan establishes a base tariff of 10% on all imports to the US., in addition to additional tariffs for countries with which it maintains a significant trade deficit. For example:
- China: 34%
- Taiwán: 32%
- European Union: 20%
- India: 26%
- Japan: 24%
- Vietnam : 46%
- South Korea: 25%
- United Kingdom: 10%
In addition, a 25% tariff will be applied to imported automobiles.
The Trump administration argues that these tariffs seek to correct the trade imbalance and encourage reciprocity in exchanges. "For too long, we have allowed countries with non-reciprocal trade agreements to benefit at the expense of American manufacturing. This ends today."«, Trump declared.
Although the aforementioned executive order does not explicitly mention Latin American countries, the base tariff of 10% could affect key exporters such as Mexico, Brazil and ArgentinaStrategic sectors such as the automotive industry, manufacturing, and agricultural exports could face an increase in the cost of their products in the U.S. market.
Impact in Argentina
Despite the above, in the Fact Sheet el Fact Sheet qualified "President Donald J. Trump Declares National Emergency to Increase Our Competitive Edge, Protect Our Sovereignty, and Strengthen Our National and Economic Security"The White House notes that "Argentina maintains restrictions on the import of remanufactured goods, limiting access to the Argentine market for U.S. products." Furthermore, the document estimates that if these barriers were eliminated, "the U.S. could increase its exports by at least $18.000 billion annually."
It also highlights that "Argentina has banned the import of live cattle from the US since 2002 due to health concerns that Washington considers unfounded." In this context, the US maintains a trade deficit of $223 million in beef and beef products with Argentina.
Trump maintains that "many countries have maintained higher tariffs on American products while enjoying more favorable conditions in the North American market."
Possible international repercussions
The affected countries could seek bilateral negotiations to mitigate the impact of tariffs or, failing that, adopt trade retaliation measures.
The executive order allows tariffs to be modified in the future. «The United States may increase tariffs in response to restrictions imposed by affected countries on U.S. products, while if trade agreements are reached that favor domestic production, tariffs could be reduced.
Implementación
- Beginning April 5th 2025At 12:01 a.m. EDT, the base tariff of 10% will be imposed on all imports.
- Beginning April 9th 2025, targeted tariffs will be applied to countries with which the U.S. maintains the largest trade deficits.
- The tariffs will remain in place until the U.S. president determines that the trade deficit and lack of reciprocity have been resolved or mitigated.
"Reciprocal trade is 'America First' trade"«, President Trump emphasized in his official statement, marking a renewed push for protectionism.
White House. (2025, April). Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits. 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/
White House. (2025, April). Fact Sheet: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security. https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/
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