United States President Donald Trump announced far-reaching new tariffs on nearly all American trading partners on Wednesday — a 34% tax on imports from China, 20% on the European Union and 26% in India among others. The new tariffs could trigger broader trade wars and take down the global economy, but Trump has justified his decision with a sorry. 

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"In the face of unrelenting economic warfare, the United States can no longer continue with a policy of unilateral economic surrender. We cannot pay the deficits of Canada, Mexico and so many other countries. We used to do it. We can't do it anymore. We take care of countries all over the world," Trump said while speaking in the White House Rose Garden. 

Also read: Trump’s reciprocal tariffs hit ‘tariff king’ India: Could they cost PM Modi his next term?

"We pay for their military. We pay for everything they have to pay. And then when you want to cut back a little bit, they get upset that you're not taking care of them any longer. But we have to take care of our people and we're going to take care of our people first. And I'm sorry to say that," 

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Trump's plans aim to correct longstanding imbalances in international trade, prioritise American workers and reduce the US trade deficit. Trump wants to raise $700 billion annually in tariff revenue, with a focus on countries that have imposed higher tariffs on US goods. 

Also read: Trump’s ‘kind reciprocal’ tariffs explained: See how much India, China, Japan, and others will pay. FULL LIST

Will tariff plans work? 

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White House said that 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. 

A 2024 study on the effects of Trump’s tariffs in his first term found that they "strengthened the U.S. economy" and "led to significant reshoring” in industries like manufacturing and steel production. 

Also read: Want to avoid Trump’s reciprocal tariffs? Trump himself has a ‘simple’ solution for world leaders

A 2023 report by the U.S. International Trade Commission that analysed the effects of Section 232 and 301 tariffs on more than $300 billion of U.S. imports found that the tariffs reduced imports from China and effectively stimulated more U.S. production of the tariffed goods, with very minor effects on prices.

The plan has been met with uncertainty, and its impact on the economy and trade relationships remains to be seen. 

Trump announces 26% 'discounted' tariffs on India, says 'PM Modi is a friend, but he hasn't been treating us right'

(With inputs from agencies)