April 2, 2025 – U.S. President Donald Trump announced the launch of a new tariff policy branded as “Liberation Day,” declaring a tough stance to reshape the global economic order. Citing the International Emergency Economic Powers Act, Trump declared a national emergency, arguing that the country’s long-standing trade deficits pose a threat to national security and economic stability.

The policy introduces a baseline 10% tariff on all imported goods, along with reciprocal tariffs of up to 50% on imports from the 60 countries with which the U.S. runs the largest trade deficits. Chinese products will face tariffs as high as 54%, while the EU, Vietnam, Cambodia, and others are also significantly impacted. The measures extend beyond physical goods to the realm of cross-border e-commerce.

Starting in May, the U.S. will cancel its de minimis exemption for small parcels from Mainland China and Hong Kong, further tightening the screws on low-cost consumer exports and reshaping the global e-commerce ecosystem.

The article highlights that this tariff offensive is not merely about protecting domestic industry but also functions as a diplomatic weapon aimed at rewriting global rules under the banner of Trump’s “America First” agenda. Immediate consequences include intensified global trade friction, retaliatory tariffs, disrupted supply chains, and heightened inflation worldwide.

Reactions have been swift. Some countries are seeking exemptions through negotiation, while others are pushing back with reciprocal measures or turning to regional cooperation. China, Japan, and South Korea convened a trilateral trade ministers’ meeting, reviving stalled free trade talks. The EU and Canada have both announced retaliatory tariffs, revealing deepening cracks within traditional alliance structures.

While China is the primary target of this tariff barrage, the article also sees opportunity in crisis: a strategic window for China to accelerate its high-end manufacturing goals, deepen Belt and Road cooperation, and restructure global supply chains on its own terms.

In conclusion, “Liberation Day” may mark not the spread of economic freedom, but the dawn of a new era of uncertainty in the global economy.

Translated by Andeez Zlauddln

Full text in Chinese available at:

https://mp.weixin.qq.com/s/6yDxUHTUyUv18zHl2R-NeQ