Trump announces sweeping new tariffs to promote US manufacturing, risking inflation and trade wars

WASHINGTON (AP) — President Donald Trump announced far-reaching new tariffs on nearly all U.S. trading partners — a 34% tax on imports from China and 20% on the European Union, among others — that threaten to dismantle much of the architecture of the global economy and trigger broader trade wars.

Trump, in a Rose Garden announcement on Wednesday, said he was placing elevated tariff rates on dozens of nations that run meaningful trade surpluses with the United States, while imposing a 10% baseline tax on imports from all countries in response to what he called an economic emergency.

The president, who said the tariffs were designed to boost domestic manufacturing, used aggressive rhetoric to describe a global trade system that the United States helped to build after World War II, saying “our country has been looted, pillaged, raped and plundered” by other nations.

The action amounts to a historic tax hike that could push the global order to a breaking point. It kickstarts what could be a painful transition for many Americans as middle-class essentials such as housing, autos and clothing are expected to become more costly, while disrupting the alliances built to ensure peace and economic stability.

Trump said he was acting to bring in hundreds of billions in new revenue to the U.S. government and restore fairness to global trade.

“Taxpayers have been ripped off for more than 50 years,” he said. “But it is not going to happen anymore.”

Trump declared a national economic emergency to levy the tariffs. He has promised that factory jobs will return to the United States as a result of the taxes, but his policies risk a sudden economic slowdown as consumers and businesses could face sharp price hikes.

Trump was fulfilling a key campaign promise as he imposed what he called “reciprocal” tariffs on trade partners, acting without Congress under the 1977 International Emergency Powers Act. But his action Wednesday could jeopardize Trump's voter mandate in last year's election to combat inflation. Several Republican senators, particularly from farm and border states, have questioned the wisdom of the tariffs. U.S. stock market futures sold off sharply overnight in anticipation of the economy weakening, after having already dropped since the start of this year.

“With today’s announcement, U.S. tariffs will approach levels not seen since the Smoot-Hawley Tariff Act of 1930, which incited a global trade war and deepened the Great Depression," said Scott Lincicome and Colin Grabow of the Cato Institute, a libertarian think tank.

The president's higher rates would hit foreign entities that sell more goods to the United States than they buy. The administration essentially calculated its tariff rates to raise revenues equal in size to the trade imbalances with those nations. Trump then halved that rate in an act that he described as “very kind.”

The White House says the tariffs and other trade imbalances led to an $1.2 trillion imbalance last year. Administration officials suggested it could take an extended set of actions by other countries to bring down the new tariffs their imports now face, and retaliatory tariffs by those countries could make the situation worse.

Olu Sonola, head of U.S. economic research at Fitch Ratings, said the average tariff rate charged by the United States would increase to roughly 22% from 2.5% in 2024.

“Many countries will likely end up in a recession," Sonola said. "You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time.”

The new tariffs will come on top of recent announcements of 25% taxes on auto imports; levies against China, Canada and Mexico; and expanded trade penalties on steel and aluminum. Trump has also imposed tariffs on countries that import oil from Venezuela and he plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips.

Canada and Mexico would not face higher rates on what they're already being charged by Trump in what he says is an effort to stop illegal immigration and drug smuggling. As of now, goods that comply with the USMCA North American trade pact would be excluded from those tariffs.

But the 20% charged on imports from China due to its role in fentanyl production would largely be added to the 34% announced by Trump. The specific products that Trump is tariffing, such as autos, would be exempt from the tariffs unveiled Wednesday, as would products such as pharmaceutical drugs that he plans to tariff at a later date.

None of the warning signs about a falling stock market or consumer sentiment turning morose have caused the administration to publicly second-guess its strategy, despite the risk of political backlash.

Senior administration officials, who insisted on anonymity to preview the new tariffs with reporters ahead of Trump's speech, said the taxes would raise hundreds of billions of dollars annually in revenues. They said the 10% baseline rate existed to help ensure compliance, while the higher rates were based on the trade deficits run with other nations and then halved to reach the numbers that Trump presented in the Rose Garden.

The 10% rate would be collected starting Saturday and the higher rates would be collected beginning April 9.

Trump removed the tariff exemptions on imports from China worth $800 or less. He plans to remove the exemptions other nations have on imports worth $800 or less once the federal government certifies that is has the staffing and resources in place.

Based on the possibility of broad tariffs that have been floated by some White House aides, most outside analyses by banks and think tanks see an economy tarnished by higher prices and stagnating growth.

Trump would be applying these tariffs on his own; he has ways of doing so without congressional approval. That makes it easy for Democratic lawmakers and policymakers to criticize the administration if the uncertainty expressed by businesses and declining consumer sentiment are signs of trouble to come.

Rep. Suzan DelBene, D-Wash., said the tariffs are “part of the chaos and dysfunction” being generated across the Trump administration. The chair of the Democratic Congressional Campaign Committee stressed that Trump should not have the sole authority to raise taxes as he intends without getting lawmakers' approval, saying that Republicans so far have been “blindly loyal.”

“The president shouldn’t be able to do that," DelBene said. "This is a massive tax increase on American families, and it’s without a vote in Congress. ... President Trump promised on the campaign trail that he would lower costs on day one. Now he says he doesn’t care if prices go up — he’s broken his promise.”

Even Republicans who trust Trump's instincts have acknowledged that the tariffs could disrupt an economy with an otherwise healthy 4.1 % unemployment rate.

“We’ll see how it all develops,” said House Speaker Mike Johnson, R-La. “It may be rocky in the beginning. But I think that this will make sense for Americans and help all Americans.”

Longtime trading partners are preparing their own countermeasures. Canada has imposed some in response to the tariffs that Trump tied to the trafficking of fentanyl. The European Union, in response to the steel and aluminum tariffs, put taxes on 26 billion euros ($28 billion) worth of U.S. goods, including on bourbon, which prompted Trump to threaten a 200% tariff on European alcohol.

Many allies feel they have been reluctantly drawn into a confrontation by Trump, who routinely says America's friends and foes have essentially ripped off the United States with a mix of tariffs and other trade barriers.

The flip side is that Americans also have the incomes to choose to buy designer gowns by French fashion houses and autos from German manufacturers, whereas World Bank data show the EU has lower incomes per capita than the U.S.

The Chinese government delivered a measured response to the new tariffs, saying in a statement: “China believes that protectionism leads nowhere, and trade and tariff wars have no winners. This has been widely recognized in the international community.”

Canadian Prime Minister Mark Carney said Trump's new tariffs would “fundamentally change the international trading system." He noted that the tariffs already in place against his country and those Trump says he plans to add will be fought with countermeasures.

“In a crisis, it’s important to come together and it's essential to act with purpose and with force and that’s what we will do,” Carney said.

Italy’s conservative Premier Giorgia Meloni said Trump's new tariffs against the EU were “wrong” and Italy would work toward an agreement with the United States to avoid a trade war that would weaken all involved.

Basic Fun CEO Jay Foreman, whose company is behind such classic toys as Tonka trucks, Lincoln Logs and Care Bears, has been working hard to come up with new ways to cut tariff-related costs like reduce packaging and eliminate batteries with the products.

But Trump’s announcement that he plans a 34% increase in tariffs on Chinese imports has solidified his decision to hike prices. Most of the company’s toys are made in China. He said the Tonka Mighty Dump Truck will go from $29.99 to $39.99 this holiday season, possibly even $45.

“There is no other way,” he said.

Associated Press writers Anne D'Innocenzio in New York, Rob Gillies in Toronto and Didi Tang, Paul Wiseman and Lisa Mascaro in Washington contributed to this report.

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump walks toward the Oval Office after signing an executive order at an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump walks toward the Oval Office after signing an executive order at an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington, as Commerce Secretary Howard Lutnick listens. (AP Photo/Evan Vucci)

Vice President JD Vance, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth listen President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

FILE - FIFA president Gianni Infantino, left, watches as President Donald Trump speaks to reporters during a meeting in the Oval Office of the White House, Aug. 28, 2018, in Washington. (AP Photo/Evan Vucci, File)

Miniature Statues of Liberty are among items for sale in a souvenir shop in New York's Times Square, Tuesday, April 1, 2025. (AP Photo/Richard Drew)

Construction workers install a lumber roof at a new home build Tuesday, April 1, 2025, in Laveen, Ariz. (AP Photo/Ross D. Franklin)

FILE - President Donald Trump speaks at a reception celebrating Women's History Month in the East Room of the White House, Wednesday, March 26, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

Federal immigration agents deployed to Minneapolis have used aggressive crowd-control tactics that have become a dominant concern in the aftermath of the deadly shooting of a woman in her car last week.

They have pointed rifles at demonstrators and deployed chemical irritants early in confrontations. They have broken vehicle windows and pulled occupants from cars. They have scuffled with protesters and shoved them to the ground.

The government says the actions are necessary to protect officers from violent attacks. The encounters in turn have riled up protesters even more, especially as videos of the incidents are shared widely on social media.

What is unfolding in Minneapolis reflects a broader shift in how the federal government is asserting its authority during protests, relying on immigration agents and investigators to perform crowd-management roles traditionally handled by local police who often have more training in public order tactics and de-escalating large crowds.

Experts warn the approach runs counter to de-escalation standards and risks turning volatile demonstrations into deadly encounters.

The confrontations come amid a major immigration enforcement surge ordered by the Trump administration in early December, which sent more than 2,000 officers from across the Department of Homeland Security into the Minneapolis-St. Paul area. Many of the officers involved are typically tasked with arrests, deportations and criminal investigations, not managing volatile public demonstrations.

Tensions escalated after the fatal shooting of Renee Good, a 37-year-old woman killed by an immigration agent last week, an incident federal officials have defended as self-defense after they say Good weaponized her vehicle.

The killing has intensified protests and scrutiny of the federal response.

On Monday, the American Civil Liberties Union of Minnesota asked a federal judge to intervene, filing a lawsuit on behalf of six residents seeking an emergency injunction to limit how federal agents operate during protests, including restrictions on the use of chemical agents, the pointing of firearms at non-threatening individuals and interference with lawful video recording.

“There’s so much about what’s happening now that is not a traditional approach to immigration apprehensions,” said former Immigration and Customs Enforcement Director Sarah Saldaña.

Saldaña, who left the post at the beginning of 2017 as President Donald Trump's first term began, said she can't speak to how the agency currently trains its officers. When she was director, she said officers received training on how to interact with people who might be observing an apprehension or filming officers, but agents rarely had to deal with crowds or protests.

“This is different. You would hope that the agency would be responsive given the evolution of what’s happening — brought on, mind you, by the aggressive approach that has been taken coming from the top,” she said.

Ian Adams, an assistant professor of criminal justice at the University of South Carolina, said the majority of crowd-management or protest training in policing happens at the local level — usually at larger police departments that have public order units.

“It’s highly unlikely that your typical ICE agent has a great deal of experience with public order tactics or control,” Adams said.

DHS Secretary Tricia McLaughlin said in a written statement that ICE officer candidates receive extensive training over eight weeks in courses that include conflict management and de-escalation. She said many of the candidates are military veterans and about 85% have previous law enforcement experience.

“All ICE candidates are subject to months of rigorous training and selection at the Federal Law Enforcement Training Center, where they are trained in everything from de-escalation tactics to firearms to driving training. Homeland Security Investigations candidates receive more than 100 days of specialized training," she said.

Ed Maguire, a criminology professor at Arizona State University, has written extensively about crowd-management and protest- related law enforcement training. He said while he hasn't seen the current training curriculum for ICE officers, he has reviewed recent training materials for federal officers and called it “horrifying.”

Maguire said what he's seeing in Minneapolis feels like a perfect storm for bad consequences.

“You can't even say this doesn't meet best practices. That's too high a bar. These don't seem to meet generally accepted practices,” he said.

“We’re seeing routinely substandard law enforcement practices that would just never be accepted at the local level,” he added. “Then there seems to be just an absence of standard accountability practices.”

Adams noted that police department practices have "evolved to understand that the sort of 1950s and 1960s instinct to meet every protest with force, has blowback effects that actually make the disorder worse.”

He said police departments now try to open communication with organizers, set boundaries and sometimes even show deference within reason. There's an understanding that inside of a crowd, using unnecessary force can have a domino effect that might cause escalation from protesters and from officers.

Despite training for officers responding to civil unrest dramatically shifting over the last four decades, there is no nationwide standard of best practices. For example, some departments bar officers from spraying pepper spray directly into the face of people exercising Constitutional speech. Others bar the use of tear gas or other chemical agents in residential neighborhoods.

Regardless of the specifics, experts recommend that departments have written policies they review regularly.

“Organizations and agencies aren’t always familiar with what their own policies are,” said Humberto Cardounel, senior director of training and technical assistance at the National Policing Institute.

“They go through it once in basic training then expect (officers) to know how to comport themselves two years later, five years later," he said. "We encourage them to understand and know their training, but also to simulate their training.”

Adams said part of the reason local officers are the best option for performing public order tasks is they have a compact with the community.

“I think at the heart of this is the challenge of calling what ICE is doing even policing,” he said.

"Police agencies have a relationship with their community that extends before and after any incidents. Officers know we will be here no matter what happens, and the community knows regardless of what happens today, these officers will be here tomorrow.”

Saldaña noted that both sides have increased their aggression.

“You cannot put yourself in front of an armed officer, you cannot put your hands on them certainly. That is impeding law enforcement actions,” she said.

“At this point, I’m getting concerned on both sides — the aggression from law enforcement and the increasingly aggressive behavior from protesters.”

Law enforcement officers at the scene of a reported shooting Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

Federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/Adam Gray)

People cover tear gas deployed by federal immigration officers outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/Adam Gray)

A man is pushed to the ground as federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/John Locher)

A woman covers her face from tear gas as federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/Adam Gray)