U.S. President Donald Trump announced sweeping new tariffs on virtually all imports entering the United States on Wednesday, potentially triggering a global trade war in what analysts describe as the most significant disruption to international trade since the post-World War Two era, as reported by the BBC.
The plan establishes a baseline 10% tariff on all imports, with substantially higher rates targeting approximately 60 countries deemed “worst offenders” by the White House, including the European Union and China.
Trump declared a national emergency during his White House Rose Garden announcement, calling the move “our declaration of economic independence” and “one of the most important days, in my opinion, in American history”.
The administration said implementation would begin on 5 April for the baseline tariffs, with higher duties for targeted nations starting on 9 April.
China faces the steepest penalties with a new 34% tariff on top of existing 20% levies, bringing total duties to at least 54%. The European Union will see 20% tariffs, while the UK faces 10% duties. Japan and India will be subject to 24% and 26% rates respectively.
“He just dropped a nuclear bomb on the global trading system,” Ken Rogoff, former chief economist at the International Monetary Fund, told the BBC.
The measures exempt Mexico and Canada, two of America’s largest trading partners, while imposing some of the highest rates on Vietnam (46%), Cambodia (49%) and Lesotho (50%).
Economic forecasters warn the tariffs could lead to higher consumer prices in the United States and potentially trigger global economic slowdowns. The Congressional Budget Office estimates the measures could raise $2.2 trillion (£1.7 trillion) in revenue by 2034.
International reaction was swift, with China’s commerce ministry stating it “firmly” opposed the tariffs and would take “resolute countermeasures”.
European Commission President Ursula von der Leyen indicated preparation for potential retaliatory measures if negotiations fail.
U.S. Treasury Secretary Scott Bessent warned against retaliation, telling Fox News: “My advice to every country right now is, do not retaliate. Sit back, take it in, let’s see how it goes. Because if you retaliate, there will be escalation”.
Asian markets opened sharply lower following the announcement, with Japan’s Nikkei 225 falling 4% and Australia’s ASX 200 dropping around 2% in early trading.
(information from the BBC)
