US President Donald Trump escalated the global trade conflict by imposing extensive tariffs on imports from both allies and adversaries, causing market turmoil and challenging long-standing free trade practices.
In response, the European Union and China pledged to retaliate, with Australia’s leader condemning the new tariffs as a breach of trust that could damage their close relationship.
Following Trump’s announcement, tariffs of 25% on all foreign-made cars and light trucks were enforced immediately, with auto parts facing additional tariffs by May 3.
Trump introduced these measures in the White House Rose Garden, calling it a significant day for America’s economy, which he framed as “Liberation Day.” He expressed that the move marked America’s “declaration of economic independence.”
Global reactions to the tariffs were swift and negative. China warned that the new levies could hinder global economic growth, while stock markets worldwide reacted with sharp declines. In Asia, Japan’s Nikkei index plummeted over 4%, and Vietnam’s stock market saw a dramatic drop of more than 5%. US futures also sank, while gold prices soared as investors sought safer assets.
Trump targeted nations he accused of treating the US unfairly, imposing a 34% additional tariff on Chinese goods, raising the total tariff on China to 54%. China quickly responded, pledging countermeasures and emphasizing the detrimental effects these tariffs would have.
The European Union saw a 20% tariff imposed, while Japan faced a 24% tariff. The UK, along with other nations, would see a “baseline” tariff of 10%. Trump remained unfazed by concerns over potential global economic instability, arguing that the tariffs would help restore America to its former economic strength.
In a show of support, his audience—comprising cabinet members and workers from industries like steel and oil—enthusiastically endorsed the tariffs, with Trump stating that they would “make America wealthy again.”
Although the tariffs were framed as “reciprocal,” experts cautioned that the administration’s projections about levies on US imports by other nations were likely inflated.
Some of the most affected nations included Cambodia, Vietnam, and Myanmar, with tariffs as high as 49%, 46%, and 44%, respectively. Russia remained unaffected due to existing sanctions related to the Ukraine conflict.
Certain goods, including copper, pharmaceuticals, semiconductors, lumber, and gold, would be exempt from the tariffs.
Trump Escalates Global Trade War with Sweeping Tariffs on Imports
European Union leaders, including Ursula von der Leyen, declared that they were prepared to respond, calling the tariffs a significant blow to the global economy. Italian Prime Minister Giorgia Meloni, a Trump ally, expressed disapproval of the tariffs on the EU but pledged to negotiate a solution.
The UK, after a successful diplomatic effort, faced fewer tariffs but still sought to mitigate their impact. Meanwhile, Canada and Mexico were not impacted by these new tariffs, as Trump had already imposed levies on them due to issues like drug trafficking and illegal immigration.
Trump’s actions reflect his longstanding belief in tariffs as a remedy for the US’s trade deficits and economic challenges. The baseline 10% tariff took effect immediately, while the higher rates for nations deemed “worst offenders” would be imposed by April 9.
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