US President Donald Trump ignited a potentially ruinous global trade war Wednesday as he slapped 10 percent tariffs on imports from around the world and harsh extra levies on key trading partners.Holding up a chart of the sweeping measures in the White House Rose Garden, Trump unveiled particularly stinging tariffs on major trade partners China and the European Union on what he called “Liberation Day.””This is one of the most important days, in my opinion, in American history,” said Trump. “It’s our declaration of economic independence.”The announcement triggered immediate anger — with US ally Australia blasting the tariffs as “not the act of a friend” — and threats of retaliation from around the world.Stock markets looked set for major volatility on reopening Thursday. US futures plummeted and safe haven gold hit a new record as investors took fright.Trump reserved some of the heaviest blows for what he called “nations that treat us badly,” including 34 percent on goods from superpower rival China, 20 percent the European Union and 24 percent on Japan.For the rest, Trump said he would impose a “baseline” tariff of 10 percent, including another key ally, Britain.The 78-year-old Republican brushed off fears of turmoil, insisting that the tariffs would restore the US economy to a 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 said.- ‘Make America wealthy again’ -A hand-picked audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump said the tariffs would “make America wealthy again.”Sweeping auto tariffs of 25 percent that Trump announced last week were due to take effect at 12:01 am (0401 GMT) Thursday.Trump labelled Wednesday’s tariffs “reciprocal” but many experts say his administration’s estimates for levies placed on US imports by other countries are wildly exaggeratedThe US president had telegraphed the move for weeks, sparking fears of a recession at home as costs are passed on to US consumers, and a damaging trade war abroad.US Treasury Secretary Scott Bessent warned nations not to impose countermeasures, saying on Fox News: “If you retaliate, there will be escalation.”Some of the worst hit trading partners were in Asia, including 49 percent for Cambodia, 47 percent for Vietnam and 44 percent for military-ruled Myanmar, which was recently hit by a devastating earthquake.Russia was not affected because it is already facing sanctions over the Ukraine war “which preclude any meaningful trade,” a White House official said.The tariffs will also reinforce fears that Trump is backing even further away from US allies towards a new order based on a vision of American supremacy.- ‘Fight’ -Australian Prime Minister Anthony Albanese on Thursday said the tariffs were “totally unwarranted”.Italian Prime Minister Giorgia Meloni, a close Trump ally, said the levies on the EU were “wrong” but pledged to work with Washington for a deal.Britain escaped relatively lightly after a diplomatic offensive that included Prime Minister Keir Starmer turning up to the White House with an invitation from King Charles III for a state visit, but said it still wanted to “mitigate” the tariffs.Canada and Mexico are not affected by the new levies as Trump has already punished the two US neighbors for what he says is their failure to crack down on trafficking of the drug fentanyl and illegal immigration.Canadian Prime Minister Mark Carney vowed to “fight” the existing levies on steel, aluminum and automobiles and to impose “countermeasures.”Brazil’s Congress reacted by approving a law allowing the executive in Latin America’s largest economy to respond to trade barriers.Trump’s announcement less than three months into his second term is culmination of a long love affair with tariffs, which he has seen for decades as a cure-all for America’s trade imbalances and economic ills.
US President Donald Trump ignited a potentially ruinous global trade war Wednesday as he slapped 10 percent tariffs on imports from around the world and harsh extra levies on key trading partners.Holding up a chart of the sweeping measures in the White House Rose Garden, Trump unveiled particularly stinging tariffs on major trade partners China and the European Union on what he called “Liberation Day.””This is one of the most important days, in my opinion, in American history,” said Trump. “It’s our declaration of economic independence.”The announcement triggered immediate anger — with US ally Australia blasting the tariffs as “not the act of a friend” — and threats of retaliation from around the world.Stock markets looked set for major volatility on reopening Thursday. US futures plummeted and safe haven gold hit a new record as investors took fright.Trump reserved some of the heaviest blows for what he called “nations that treat us badly,” including 34 percent on goods from superpower rival China, 20 percent the European Union and 24 percent on Japan.For the rest, Trump said he would impose a “baseline” tariff of 10 percent, including another key ally, Britain.The 78-year-old Republican brushed off fears of turmoil, insisting that the tariffs would restore the US economy to a 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 said.- ‘Make America wealthy again’ -A hand-picked audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump said the tariffs would “make America wealthy again.”Sweeping auto tariffs of 25 percent that Trump announced last week were due to take effect at 12:01 am (0401 GMT) Thursday.Trump labelled Wednesday’s tariffs “reciprocal” but many experts say his administration’s estimates for levies placed on US imports by other countries are wildly exaggeratedThe US president had telegraphed the move for weeks, sparking fears of a recession at home as costs are passed on to US consumers, and a damaging trade war abroad.US Treasury Secretary Scott Bessent warned nations not to impose countermeasures, saying on Fox News: “If you retaliate, there will be escalation.”Some of the worst hit trading partners were in Asia, including 49 percent for Cambodia, 47 percent for Vietnam and 44 percent for military-ruled Myanmar, which was recently hit by a devastating earthquake.Russia was not affected because it is already facing sanctions over the Ukraine war “which preclude any meaningful trade,” a White House official said.The tariffs will also reinforce fears that Trump is backing even further away from US allies towards a new order based on a vision of American supremacy.- ‘Fight’ -Australian Prime Minister Anthony Albanese on Thursday said the tariffs were “totally unwarranted”.Italian Prime Minister Giorgia Meloni, a close Trump ally, said the levies on the EU were “wrong” but pledged to work with Washington for a deal.Britain escaped relatively lightly after a diplomatic offensive that included Prime Minister Keir Starmer turning up to the White House with an invitation from King Charles III for a state visit, but said it still wanted to “mitigate” the tariffs.Canada and Mexico are not affected by the new levies as Trump has already punished the two US neighbors for what he says is their failure to crack down on trafficking of the drug fentanyl and illegal immigration.Canadian Prime Minister Mark Carney vowed to “fight” the existing levies on steel, aluminum and automobiles and to impose “countermeasures.”Brazil’s Congress reacted by approving a law allowing the executive in Latin America’s largest economy to respond to trade barriers.Trump’s announcement less than three months into his second term is culmination of a long love affair with tariffs, which he has seen for decades as a cure-all for America’s trade imbalances and economic ills.
