US President Donald Trump escalated a global trade war on Wednesday by imposing sweeping tariffs on imports from both allies and adversaries, sending financial markets into turmoil and disrupting long-established free trade norms.
President Trump announced plans for the sweeping tariffs on Wednesday, asserting that the US had been “looted, pillaged, raped, and plundered” by other nations. He imposed a 10 percent tariff on most goods imported into the US, but levied much higher rates on key trade partners, including both friends and foes, fueling a global trade war with the potential to trigger inflation and impede economic growth.
The European Union and China immediately vowed retaliation against the levies, while Australia’s leader described the new tariffs as “not the act of a friend” and expressed concern that they would damage the close allies’ relationship.
Tariffs Begin Shortly After Announcement By Trump
Shortly after Trump’s announcement, separate tariffs of 25 percent on all foreign-made cars and light trucks went into effect, with tariffs on auto parts slated to follow by May 3.
Standing before a chart outlining the sweeping measures in the White House Rose Garden, Trump unveiled particularly harsh tariffs targeting major trade partners China and the European Union, declaring it “Liberation Day”.
“This is one of the most important days, in my opinion, in American history,” Trump stated. “It’s our declaration of economic independence.”
The tariff announcement immediately triggered anger and condemnation worldwide, with China warning that the measures could “endanger” global economic development.
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Stock markets are poised for significant volatility on Thursday, with Tokyo’s Nikkei leading an Asian selloff, plummeting more than 4 percent, and Hanoi shares plunging more than 5 percent after Vietnam was hit with tariffs of 46 percent.
US futures also plummeted, and safe-haven gold reached a new record high as investors grew increasingly concerned.
Trump reserved some of the most punishing tariffs for what he termed “nations that treat us badly”.
Tariffs Imposed On Various Countries
- This included an additional 34 percent tariff on goods from China, bringing the total added tariff rate there to 54 percent.
- Beijing swiftly vowed countermeasures and called for dialogue, warning that the tariffs would “seriously harm” all parties involved.
- The European Union was targeted with a 20 percent tariff, while Japan faced a 24 percent tariff, prompting Japan’s trade minister to call the measures “extremely regrettable”.
- For all other nations, Trump stated that he would impose a “baseline” tariff of 10 percent, including the key US ally, Britain.
The 78-year-old Republican brushed aside fears of economic disruption, insisting that the tariffs would restore the US economy to a previously lost “Golden Age.”
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump declared.
Source: cnn
