US President Donald Trump on Wednesday declared a “national economic emergency” to deal with America’s whopping $1.2 trillion trade deficit. Trump unveiled reciprocal tariffs on 60 nations, the highest imposed by the US since 1872. In a statement following Trump’s address, the White House said that the massive US goods trade deficit has led to the “hollowing out of” the country’s manufacturing base.
“Today, President Donald J. Trump declared that foreign trade and economic practices have created a national emergency, and his order imposes responsive tariffs to strengthen the international economic position of the United States and protect American workers,” the White House said in a statement.
Trump administration argued that the current situation of the country’s manufacturing sector is resulting in a lack of incentive to increase advanced domestic manufacturing capacity, undermining critical supply chains and rendering the US’s defence-industrial base dependent on foreign adversaries.
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