Donald Trump Reciprocal Tariffs: 10% tariffs on all imports, 25% on imported automobiles; US President describes India as 'very, very tough' (trade partner)—Key takeaways

Donald Trump April 2 Tariff Announcements: US President Donald Trump announced reciprocal tariffs on major trade partners on Wednesday, April 2, in an event dubbed as “Liberation Day for Americans”. He announced baseline 10 per cent tariffs on all imports and 25 per cent tariffs on all imported automobiles, effective midnight local time (April 3). While Trump's advisers believe the tariffs will bring strategically key manufacturing capabilities back to the US, many analysts have warned that the duties could erect new barriers around the world's largest consumer economy.

Describing former US president Joe Biden as "Sleepy Joe", Trump said that people sitting in the Oval Office earlier didn't do their job properly. "It's our declaration of independence... Our country and its taxpayers have been ripped off for more than 50 years," said the 47th US President, who took office in January.

Addressing the media from the White House Rose Garden, Trump said the following (edited excerpts):

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• April 2 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed...

• The day that we began to make America wealthy again...

• It's our declaration of independence

• Our country and its taxpayers have been ripped off for more than 50 years

• People sitting in the Oval Office earlier didn't do their job properly

Donald Trump explaining the reciprocal tariffs in his "American Liberation Day" address on April 2

• But it's not going to happen anymore

• Sometimes the friend is worse than the foe (describing the need for reciprocal tariffs)

• They do it to us... We do it to them

The Trump administration's reciprocal tariffs on major US trade partners

• Very simple (reciprocal tariffs)

• I call these 'kind reciprocal tariffs', they're not full reciprocal tariffs

The world’s largest economy has active trade agreements with more than 20 countries including India.

For weeks, growing concerns about the US President’s harsh action on the trade front, and retaliatory action by America’s major trade partners, coming in the way of economic growth kept investors on the back foot. Jitters from Trump’s tariff action have kept investors on tenterhooks, fearing that too much disruption can come in the way of economic growth while causing inflationary pressure.