President Donald Trump’s extensive tariffs on US imports have ignited retaliation threats, as businesses and governments rushed to assess the repercussions of a trade war that could disrupt global alliances.
The penalties announced last night triggered chaos in world markets and drew criticism from leaders bracing for the end of a trade liberalisation era that has defined the global landscape for years.
Mr. Trump stated he would impose a 10% baseline tariff on all imports to the United States, alongside increased targeted duties on some of the nation’s primary trading partners, affecting products ranging from Italian coffee and Japanese whisky to sportswear produced in Asia.
Automaker Stellantis announced it would temporarily lay off US workers and close facilities in Canada and Mexico.
South Korea, Mexico, India, and several other trading nations indicated they would pause for the moment as they seek concessions before the targeted tariffs take effect on April 9.
Both Washington’s allies and rivals cautioned that the actions could deliver a severe blow to global trade.
“The repercussions will be catastrophic for millions of people worldwide,” EU chief Ursula von der Leyen stated.
Global stock markets fell sharply as investors flocked to safe-haven bonds and gold, with analysts noting that the tariffs exceeded expectations. The US stock market dropped, particularly impacting tech and retail shares.
According to Fitch Ratings, the new US tariffs represent the highest levels seen in over a century. Imports to the largest consumer market now endure an average duty of 22.5%, an increase from 2.5% last year.
Mr. Trump asserts that the “reciprocal” tariffs are a reaction to barriers on US goods, though his list of targets inexplicably includes uninhabited Antarctic islands.
Some of the most significant tariff increases come at the expense of underdeveloped nations in Africa.
Administration officials mentioned that the tariffs would generate domestic manufacturing jobs and expand export markets abroad, although they indicated it would take time for the benefits to materialise.
Donald Trump’s series of penalties has unsettled financial markets.
“We understand many Americans are concerned,” Vice President JD Vance told Fox News. “What I would ask people to recognise is that we won’t resolve these issues overnight.”
Economists warned that the tariffs could reignite inflation, elevate the risk of a US recession, and increase costs for the average American family by thousands of dollars—a potential burden for a president who promised to lower living expenses.
Mr. Trump currently has no public engagements scheduled before heading to a golf tournament at one of his resorts in Florida.
“THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING,” he posted on social media.
Redefining the global order
Mr. Trump’s new trade restrictions target many of the country’s most significant geopolitical allies.
In Asia, he imposed a 24% tariff on Japan and a 25% tariff on South Korea, both of which host major US military installations. He also levied a 32% tariff on Taiwan, as the island faces increased military pressure from China.
In Europe, Germany’s IW research institute estimated that the tariffs would strip €750 billion from the region’s economy. Mr. Trump has already strained NATO alliances with demands for increased defense spending and potential concessions to Russia regarding its conflict in Ukraine.
Read more: EU seeks to avoid trade war after US tariff announcement Why the pharmaceutical sector is so important to Ireland Targeting of EU by erstwhile closest ally follows litany of insults and threats
Germany’s economy minister, Robert Habeck, suggested fostering closer economic bonds with Canada and Mexico. “We should seize opportunities for new alliances decisively,” he stated.
These two countries, which are the largest trading partners of the US, were not impacted by the latest targeted tariffs.
Nevertheless, they already face 25% tariffs on a wide range of goods and now contend with a separate array of tariffs on automobile imports.
Mexican officials affirmed they would continue negotiations with the Trump administration. Canada, however, has indicated it must transform its economy to lessen dependence on the US and has pledged to retaliate against Mr. Trump’s tariffs.
Canadian Prime Minister Mark Carney noted he had discussed strengthening trade connections with German Chancellor Olaf Scholz.
“As we confront the crisis triggered by President Trump’s tariffs, dependable trade partners are more crucial than ever,” he mentioned on social media.
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