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| Trump announces new tariffs on all countries of the world:photo/AP |
President Donald Trump has declared a 10% baseline tariff on all imports entering the United States, in addition to imposing much steeper tariffs on several countries that have trade surpluses. This decision could potentially shake up global trade, increase costs for American consumers, and provoke retaliatory trade conflicts with important U.S. allies.
During a speech in the White House Rose Garden, Trump presented a chart detailing the new tariff percentages: 34% on China, 20% on the European Union, 25% on South Korea, 24% on Japan, and 32% on Taiwan.
The president characterized the global trade system, which the United States played a pivotal role in establishing post-World War II, in severe terms, asserting that the nation had been “looted, pillaged, raped, and plundered” by other countries.
To support the implementation of new tariffs, he declared a national economic emergency under the 1977 International Emergency Powers Act.
While Trump presents these tariffs as a means to rejuvenate American manufacturing and potentially generate substantial annual revenue, critics caution that they may result in increased prices for essential items such as automobiles, clothing, and electronics, ultimately placing a financial strain on consumers.
This announcement follows previous tariffs, including a 25% levy on auto imports and expanded tariffs on steel and aluminum, alongside sanctions on nations importing oil from Venezuela.
Trump has also suggested the possibility of future tariffs on pharmaceuticals, lumber, copper, and computer chips. In response, major trading partners are preparing countermeasures; Canada has already enacted tariffs in reaction to the 25% auto import levies.
The European Union has threatened to impose new tariffs on $28 billion worth of U.S. goods, including bourbon, which could escalate to a 200% tariff on European alcohol. Italy’s Prime Minister Giorgia Meloni cautioned that a trade war between the EU and the U.S. would have significant repercussions for both parties.
European Commission President Ursula von der Leyen remarked that while Europe did not instigate this conflict, it would respond if necessary. Domestically, the tariff decision has sparked bipartisan criticism, with Democrats arguing that the tariffs represent a substantial tax increase on American families.
Representative Suzan DelBene (D-Wash.) pointed out that Trump had promised to reduce costs, yet is now raising prices across the board. Meanwhile, Republicans are split; House Speaker Mike Johnson (R-La.) acknowledged that the initial impact might be challenging but expressed optimism that it would ultimately benefit Americans.
Why Jonathan Reynolds expressed disappointment regarding the tariffs?
British business minister Jonathan Reynolds has expressed concern over the tariffs imposed by Donald Trump, labeling them as a significant threat to the UK due to their potential to disrupt global trade.
In an interview with Times Radio, Reynolds emphasized that any disturbance in the global trading system poses risks to the UK economy.
Although the UK faces a lower tariff rate of 10% compared to the EU's 20%, he conveyed his disappointment at the imposition of any tariffs.
He said "any trade barriers, especially with the US—one of the UK's primary trading partners—are disheartening and present challenges."
Reynolds advocated for a measured response, urging the UK government to refrain from escalating tensions through retaliation and instead focus on dialogue with the US to pursue an economic agreement.
The FTSE 100 experienced its largest single-day decline since August, as Donald Trump's extensive tariffs resulted in a loss of trillions in the global market.
Britain's stock market experienced its largest single-day decline in eight months, driven by concerns over Donald Trump's intensifying trade war, which prompted a significant sell-off.
The FTSE 100 index, representing major companies, ended the day down 133 points, or 1.5%, closing at 8,474 points.
This marks the steepest drop since early August of the previous year, a time when markets were also reacting to worries about a potential US recession.
Bank shares were particularly affected, with Standard Chartered plummeting 13%, HSBC decreasing by 8.8%, and Barclays dropping 8.7%. Additionally, mining stocks faced pressure due to fears that a global economic slowdown could reduce demand for key commodities like iron ore, copper, and coal.