Washington, Feb 21 (.) US President Donald Trump signed a proclamation imposing a temporary 10 percent import duty on goods from around the world, calling it the start of an “adjustment process” to tackle fundamental international payment problems, protect American jobs, and rebalance global trade in favor of US workers, farmers, and manufacturers.
Invoking his authority under Section 122 of the Trade Act of 1974, Trump said the move aims to “stem the outflow of dollars to foreign producers and incentivize the return of domestic production,” while correcting the United States’ balance-of-payments deficit, creating jobs, and lowering costs for consumers.
The temporary import duty will take effect on February 24 at 12:01 a.m. EST and remain in place for 150 days. Certain goods, including critical minerals, energy products, essential agricultural items, pharmaceuticals, electronics, and USMCA-compliant imports from Canada and Mexico, will be exempt to ensure the duty effectively addresses the intended economic challenges.
Trump also announced that the Office of the United States Trade Representative will continue using its Section 301 authority to investigate unfair and discriminatory trade practices, potentially imposing additional tariffs.
Addressing the scale of the problem, the White House noted: “The United States faces fundamental international payment problems, in particular a large and serious balance-of-payments deficit. In 2024, the annual goods trade deficit exploded by over 40 percent, reaching $1.2 trillion.”
The current account deficit, measuring trade, investment returns, and remittances, hit -4.0 percent of GDP in 2024, nearly double the deficit of the previous decade and the largest since 2008. The US net international investment position fell to $26 trillion, 89 percent of GDP, marking the most negative position of any country on Earth.
Trump emphasized that tariffs remain a key tool in reshaping global trade: “Since Day One, my trade policy has challenged the assumption that the United States must tolerate the distorted and imbalanced global trading system.Our tariffs brought the world to the negotiating table on our terms.”
The President highlighted the results of his trade strategy: “Major US trading partners covering more than half of global GDP have agreed to historic trade and investment deals to open new markets for US exports, promote manufacturing reshoring, and bring reciprocity and balance to our trade relations… These deals are creating high-paying American jobs and boosting U.S. manufacturing and technological leadership.”
Trump said, “Today’s action will continue to protect the national interests of the United States by addressing the balance-of-payments deficit to further usher in America’s Golden Age.”. .