Key Metrics
20.61
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-08-05
Key Impacts
Positive Impacts (2)
Negative Impacts (8)
Event Overview
The executive action reflects heightened economic security measures through tariff adjustments, leveraging emergency powers to counter perceived threats from trade imbalances. This underscores tensions between protectionist policies and global trade dynamics, emphasizing sovereign authority in economic governance amid geopolitical and fiscal challenges.
Collect Records
President Issues Order Further Modifying Reciprocal Tariff Rates on U.S. Imports
On April 2, 2025, the President of the United States issued an executive order further modifying tariff rates on imports, citing large and persistent annual U.S. goods trade deficits as an ongoing national security and economic threat. Acting under the authority of various U.S. statutes, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974 (19 U.S.C. 2483), and section 301 of title 3, United States Code, the President reaffirmed the national emergency declared in Executive Order 14257 and imposed additional ad valorem duties deemed necessary and appropriate.
The decision was based on updated information and recommendations from senior officials regarding continued lack of reciprocity in bilateral trade relationships, the impact of disparate foreign tariff rates and non-tariff barriers on U.S. exports, domestic manufacturing, supply chains, and the defense industrial base. The President noted that while some trading partners have agreed or are close to agreeing to trade and security commitments aligned with U.S. interests, others have either not offered sufficient terms to address imbalances or have failed to align with U.S. economic and national security policies.
The order specifies that certain foreign trading partners' actions or inactions continue to contribute to the national emergency. As a result, the United States is further modifying its reciprocal tariff rates in order to rectify ongoing trade practices deemed harmful to U.S. economic and security interests.
This executive order follows recommendations and new information received regarding the status of trade negotiations, retaliatory actions from other nations, and efforts by some partners to coordinate with the United States on economic and national security matters. The specific changes to the tariff rates or list of affected countries are not detailed in the provided excerpt.