United States President Donald Trump on Wednesday declared sweeping tariffs of 10 per cent on imports from all countries, despite widespread warnings of likely retaliation from around the world.
The move has further fueled fears of a deepening global trade war.
The highly anticipated announcement fulfils Trump’s longstanding vow to hit back at countries he believes have treated the U.S. unfairly in trade practices.
While Trump has frequently threatened reciprocal tariffs against various countries, Wednesday’s announcement revealed a different strategy. The U.S. will now impose tariffs on imports from dozens of nations at half of their current tariff rate and other fees on American imports.
Among the most significantly impacted nations are China, with a reciprocal tariff rate of 34 per cent, Japan at 24 percent, the European Union at 20 percent, India at 26 percent, Vietnam at 46 percent, and Taiwan at 32 percent.
Explaining his stance, Trump stated: “Reciprocal. That means they do it to us and we do it to them.”
The universal tariffs will take effect on Saturday at 12:01 a.m., while the reciprocal tariffs are set to be implemented on April 9, specifically targeting new imports of foreign-made goods.
Trump argues that these tariffs will compel other nations to lower their own rates on U.S. goods and services, thereby creating a more balanced economic landscape for American exports. Additionally, he believes the tariffs will incentivise companies to manufacture goods like cars within the U.S. to avoid the tax burden.
However, some analysts caution that these tariffs may lead to increased costs for American consumers, as businesses pass along the financial burden.
Even before Trump’s official announcement, several countries had signalled their intent to retaliate. Canada stated that it was preparing countermeasures, while China, Japan, and South Korea were reportedly coordinating a unified response. The European Union also expressed its readiness to “calibrate our response” to the new tariffs.
The announcement comes on the same day Trump faced opposition from the Senate, where four Republicans broke ranks to support a resolution aimed at ending the emergency declaration that enabled tariffs against Canada. The resolution narrowly passed with a vote of 51-48.
However, the resolution has little chance of success in the Republican-controlled House of Representatives, and even if it did pass, it would still require Trump’s signature to take effect—an unlikely scenario given his commitment to the tariffs.
The newly announced tariffs are part of a broader series of trade measures that Trump has implemented since taking office in January. These include 25 percent tariffs on imported steel and aluminium, as well as levies on imported automobiles, auto parts, and goods from Mexico and Canada.
