ARI SHAPIRO, HOST:
Just after the stock markets closed today, President Trump announced broad new tariffs on all imports and even higher ones for countries that have a lot of trade barriers.
(SOUNDBITE OF ARCHIVED RECORDING)
PRESIDENT DONALD TRUMP: In short, chronic trade deficits are no longer merely an economic problem. They're a national emergency that threatens our security and our very way of life. It's a very great threat to our country.
SHAPIRO: Trump calls them reciprocal tariffs and has declared this to be Liberation Day for the U.S. economy, but experts warn that aggressive new tariffs could tank the U.S. economy and burden consumers with higher prices. Senior White House correspondent Tamara Keith is following this. Hey, Tam.
TAMARA KEITH, BYLINE: Hi.
SHAPIRO: Let's jump straight into the details. What did President Trump announce?
KEITH: Starting Saturday, every item imported into the U.S. from every single country in the world will be hit with at least a 10% tariff. On top of that, starting a week from now, a long list of countries with higher barriers to trade will face even higher tariffs. So take Vietnam, a country where a lot of American companies moved manufacturing after Trump put tariffs on China in his first term. According to a chart that Trump held up in the Rose Garden event, products coming into the U.S. from Vietnam would now face a tariff of 46%.
Another thing to note is that this is very likely not the end of the story. President Trump has previously said that he's open to negotiation, so the actual tariff load could end up changing over time. But he said the best way to avoid tariffs is for companies to bring their operations to the United States, something that cannot happen overnight.
SHAPIRO: What does the president say these tariffs will accomplish?
KEITH: He says he thinks this will boost U.S. manufacturing, bring down the trade deficit and bring in revenue to the Treasury to pay for a tax cut that he wants Congress to pass this year. He says it will transform the country.
(SOUNDBITE OF ARCHIVED RECORDING)
TRUMP: We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers. And ultimately, more production at home will mean stronger competition and lower prices for consumers.
KEITH: But most economists warn that these tariffs will ultimately hike consumer prices. Importers in the U.S. pay them, not foreign countries, and they'll pass them on to Americans buying the products. And some countries are already threatening retaliation that could hit farmers and other key U.S. industries that rely on exports. So this is a risky economic bet. Trump acknowledged that there is a lot of skepticism about this plan, but he insists that the strong economy in his first term is proof that he is right and all the experts and doubters are wrong.
SHAPIRO: What about the voters? Is this likely to be popular with Americans?
KEITH: The president called up a retired auto worker at this event to the microphone, who praised the move. He credits blue-collar workers in the Midwest with his win in November. And the power of tariffs is a core belief for Trump going back at least to the 1980s. He campaigned on this very policy, including a rather crude description of reciprocal tariffs he delivered at a rally in South Carolina last February.
(SOUNDBITE OF ARCHIVED RECORDING)
TRUMP: It's called, you screw us, and we screw you.
(CHEERING)
TRUMP: Very simple.
(CHEERING)
TRUMP: As tariffs on foreign countries go up, taxes on American workers and families will come down very substantially.
KEITH: So as he boasted today, promises made, promises kept. This is what he talked about in the campaign. But there are real warning signs for the president here. Recent polls indicate, overall, Americans have significant concerns with the president's focus on tariffs. A Fox News poll released over the weekend found 69% of people believe tariffs will make the products they buy more expensive. Trump has already predicted there could be short-term pain in the economy. So if this doesn't work out, or if it takes too long, he and his party could suffer the political consequences.
SHAPIRO: NPR's Tamara Keith, joining us from the White House, thank you.
KEITH: You're welcome, Ari. Transcript provided by NPR, Copyright NPR.
NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.
