Donald Trump's Liberation Day speech

On April 2, 2025, United States president Donald Trump signed and announced at a White House Rose Garden ceremony, dubbed as the "Liberation Day" speech, Executive Order 14257, titled Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits. The order outlines extensive global tariff policies which he described as the United States' "declaration of economic independence".
Trump revealed it as a comprehensive trade policy overhaul that significantly altered the United States' economic relationships with global trading partners and represented the culmination of Trump's promised "reciprocal tariff" strategy, which he had described as necessary to correct what he characterized as decades of unfair trading relationships that disadvantaged American manufacturers and workers. He dubbed April 2 as "Liberation Day" and "one of the most important days in American history".
Prior to the "Liberation Day" announcement, Trump had implemented several tariff policies since returning to office in January 2025. These included duties on steel and aluminum imports, as well as tariffs targeting specific countries such as China, Canada, and Mexico. The administration had also announced a 25% tariff on imported automobiles and automotive parts scheduled to take effect at midnight on April 3, 2025. These previous measures had already increased the average U.S. tariff rate to approximately 12%, the highest level since World War II according to Deutsche Bank Research.
In the White House Rose Garden address on April 2, 2025, Trump declared that April 2 was "Liberation Day," describing the announcement as "one of the most important days in American history" and "our declaration of economic independence." The president unveiled a two-tier tariff structure: a baseline 10% tariff applied universally to imports from all countries with the exception of Canada and Mexico, and additional country-specific "reciprocal" tariffs based on what the administration deemed unfair trade practices by approximately 60 individual nations. The 10% baseline tariff would begin at 12:01 a.m. EST on April 5, 2025 (04:01 UTC), while the higher country-specific rates would commence at 12:01 a.m. EST on April 9, 2025.
Trump declared a national emergency to address what he described as a "large and persistent U.S. trade deficit", enabling him to invoke the IEEPA to impose a 10% tariff on all imports to the US, effective April 5, 2025. He also announced higher tariffs on approximately 60 countries and territories set to begin April 9. The White House confirmed that these tariffs would be applied in addition to existing measures on Chinese imports, resulting in an effective tariff rate of 54% on Chinese goods after April 9, 2025.
The tariffs would apply to more than 100 trading partners. However, they would not impact products already subject to previous tariff actions, including steel, aluminum, vehicles, and vehicle parts. Energy products and certain minerals "not available in the United States" were also exempted.
Among the highest tariff rates announced included:
The $800 de minimis threshold for duty-free imports from China was eliminated, with plans to eliminate this threshold for other countries once administrative capacity was established. The elimination of this exemption would take effect on May 2, 2025.
During the speech, Trump framed the tariffs as being in response to a "national emergency," asserting they would boost domestic production and create American jobs. He stated, "We're going to start being smart, and we're going to start being very wealthy again," claiming the new policy would generate "trillions and trillions of dollars to reduce our taxes and pay down our national debt." He cited a US$1.2 trillion trade deficit from the previous year as evidence of unfair global trading practices.
The president characterized his approach to the tariff implementation as "kind," explaining that the government would only charge other countries half of what administration calculations suggested he should apply based on the trade practices of the impacted nations. When describing the rates during his speech, Trump displayed a chart showing reciprocal tariff rates for U.S. trading partners. Associated White House materials indicated that calculations included assessments of "currency manipulation and trade barriers" imposed by other countries, though the specific formula was not disclosed. He offered trading partners a straightforward alternative: "Terminate your own tariffs. Drop your barriers." and summarized his tariff policy as: "If you want your tariff rate to be zero, then you build your product right here in America."
Financial markets generally responded negatively to the announcement. S&P 500 index futures, which had gained 0.7% during normal trading hours, tumbled more than 3% following Trump's announcement. Similarly, Japanese Nikkei 225 futures fell approximately 2%.
Financial analysts expressed surprise at the tariffs' magnitude. Head of macro strategy at Academy Securities Peter Tchir described the rates as "shockingly high compared to what people were expecting" and called the announcement "a disaster". Others suggested the high rates might represent an opening position for subsequent negotiations rather than permanent policy.
Outside the White House gates following the ceremony, protestors gathered with signs depicting the Mr. Monopoly character and messages criticizing the policy as "liberating" money from consumers' wallets to benefit wealthy interests.
Senate Democrats voiced opposition to the tariffs. Oregon Senator Ron Wyden characterized them as "a tax on almost everything families buy" that "won't rebuild American manufacturing or help working families get ahead."
Representative Suzan DelBene (D-WA-01), chair of the Democratic Congressional Campaign Committee, characterized the tariffs as part of broader "chaos and dysfunction" and argued that the president should not have unilateral authority to impose such measures.
Republican leadership generally supported the president's tariff actions, while acknowledging potential short-term economic disruption. Speaker of the House Mike Johnson (R-LA-04) expressed confidence that despite initial difficulties, the policy would ultimately "make sense for Americans and help all Americans."
New York governor Kathy Hochul called the impending tariffs "nothing but a reckless tax on hard-working New Yorkers" that would severely damage the state's economy, particularly businesses dependent on Canadian tourism.
Former Vice President Mike Pence, who served in Trump's first presidency, criticized the tariffs as the "largest peacetime tax hike in U.S. history". He also stated that they are "nearly 10x the size of those imposed during the Trump-Pence administration and will cost American families over $3,500 per year".
American experts and business organizations raised concerns about potential inflationary effects and supply chain disruptions. The National Retail Federation issued a statement warning that the tariffs would "cause more anxiety and uncertainty for American businesses and consumers," emphasizing that U.S. importers, not foreign countries or suppliers, would bear the initial financial burden.
The National Association of Manufacturers expressed concern that the large scale of the tariffs would threaten jobs, supply chains, investment, which in turn would threaten "America's ability to outcompete other nations and lead as the preeminent manufacturing superpower."
The National Restaurant Association similarly predicted that tariffs at the scale they were presented would create "change and disruption" restaurant owners would have difficulty with bearing to keep their businesses open, noting that food and packaging costs would likely increase.
Economic experts from the libertarian Cato Institute think tank warned that the tariff levels approached those of the 1930 Smoot-Hawley Tariff Act, legislation widely believed to have exacerbated the Great Depression.