US President Trump last night unveiled his new and comprehensive trade policy including protective tariffs on almost all goods imported into the US. During his speech in the White House rose garden "to bring wealth back to the US," Trump made it clear that this dramatic change in economic policy is designed to bring industrial power back to the US.
In aftermarket trading on Wall Street futures were sharply lower with Nasdaq down 3% and the S&P 500 down 2%. Asian markets were down 2% in premarket trading on the news of 25% import tariffs on car imports to the US, which are a major blow to the Japanese economy.
From this weekend, a basic tariff of 10% will be imposed on all goods imported into the US from countries that do not comply with the USMCA trade agreement. Products from Mexico and Canada will continue to bear a 25% tariff if they are deemed non-compliant with the agreement. In addition, starting next Tuesday, April 9, reciprocal tariffs will be imposed on about 60 countries that Trump defined as "the most damaging,", at a rate equal to half of the tariffs they impose on US goods.
For example, China will be subject to a 34% tariff, while the EU will be subject to a 20% tariff. Goods from Japan will be subject to tariffs of 24% and India 26%.
Israel is also on the list, with relatively low reciprocal tariffs compared to most countries - 17% - on Israeli products sold in the US. "It's very simple: If they do it to us, we do it to them," Trump said. "We are finally putting America first." Minister of Finance Bezalel Smotrich has signed an order cancelling Israeli tariffs on imports from the US but the order requires approval from the Knesset finance Committee.
Published by Globes, Israel business news - en.globes.co.il - on April 4, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.