Trump’s reciprocal tariffs to reshape U.S. trade policy

White House calls Trump’s tariffs a historic move amid market uncertainty.

White House press secretary Karoline Leavitt answers a reporter's question during the daily press briefing in the Brady Press Briefing Room at the White House on April 1, 2025, in Washington, D.C. Photo by Andrew Harnik/Getty Images

By Anna Fadiah and Hayu Andini

President Donald Trump’s decision to impose reciprocal tariffs on countries worldwide marks a pivotal moment in U.S. economic history. The White House declared that April 2, 2025, would be remembered as a milestone, as the administration moves forward with measures aimed at addressing what it sees as unfair trade practices.

"Tomorrow, April 2, 2025, will go down as one of the most important days in modern American history," White House spokeswoman Karoline Leavitt told reporters on Tuesday.

The new tariffs, which will take effect immediately following Trump’s announcement, are expected to have significant implications for global trade. The administration argues that while the U.S. has maintained an open economy, many foreign countries have placed barriers on American exports, creating an imbalance that must be corrected.

The White House defends the new trade policy

Leavitt emphasized that the tariffs are a necessary step to protect American industries and ensure a fair trading system.

"Our country has become one of the most open economies in the world, and we have a consumer base, the best consumer base, but too many foreign countries have closed their markets to our exports. That's fundamentally unfair," she said.

While the White House is positioning the move as a long-overdue correction, questions remain about the specifics of the policy and how it will be enforced. Analysts warn that the tariffs could trigger retaliatory measures from key U.S. trading partners, potentially escalating into a broader trade conflict.

Markets react negatively to Trump’s tariff announcement

Stock markets saw a sharp decline following news of the upcoming tariffs, reflecting investor concerns over economic uncertainty. Trump has declared April 2 as "Liberation Day," signaling his commitment to reshaping global trade relationships, but financial markets have responded with caution.

The Nasdaq, which is heavily weighted with technology stocks, has dropped more than 2,500 points since February when Trump first hinted at the policy shift. The Dow Jones Industrial Average has also experienced significant losses, falling nearly 3,000 points.

Economists caution that the tariffs could lead to supply chain disruptions, price increases for consumers, and potential job losses in industries reliant on international trade. However, Trump’s supporters argue that the move will ultimately strengthen the U.S. economy by encouraging domestic production and reducing dependence on foreign goods.

Global response and potential consequences

The announcement of reciprocal tariffs has sparked reactions from major U.S. trading partners, with several countries warning of possible countermeasures. The European Union, China, and Canada are among those expected to respond with their own tariffs on American products.

If a full-scale trade dispute unfolds, industries such as agriculture, automotive manufacturing, and consumer electronics could be hit the hardest. Farmers who rely on exports may face declining demand, while companies that depend on imported raw materials could see costs rise.

Despite these concerns, Trump remains firm in his stance, arguing that his administration’s policies will lead to a stronger and more independent U.S. economy.

The road ahead for U.S. trade policy

With the tariffs set to take effect, all eyes will be on the administration’s next steps. Trump has not ruled out additional trade measures, and his economic advisors have hinted that more policies could be introduced to further reshape global commerce.

As businesses, consumers, and international partners brace for the impact, the long-term effects of Trump’s trade strategy remain uncertain. Whether the tariffs achieve their intended goal or lead to greater economic turbulence will be a key issue in the months ahead.