Washington – Donald Trump has declared war on global trade, announcing 10% tariffs on all imports into the United States and increased “reciprocal” tariffs for the 60 countries with the largest trade imbalances with the US.
Article Key Points
The European Union will be hit by tariffs of 20%, China by 34% and the United Kingdom by 10%.
“This is the day of liberation,” Trump declared from the White House Rose Garden, “let’s reclaim our future and make America rich again.” The president promised that the tariffs would generate “billions and trillions of dollars” to reduce America’s debt and taxes.
“Reciprocal” Tariffs: What They Mean
Trump explained that the tariffs will be “reciprocal,” meaning the U.S. will apply duties similar to those imposed by other countries on American products. However, he clarified that the U.S. tariffs will be “half” of those applied by others.
For example, the EU, which applies 39% tariffs on American products, will be hit by 20% tariffs from the US.
The Executive Order: Anti-Retaliation Clause
The executive order signed by Trump includes a clause that allows the U.S. to respond to any retaliation. “We will respond,” administration officials assured, stressing the urgency of addressing the “unsustainable situation” of the American trade deficit.
Market reactions and alliances
Trump's announcement weakened the dollar and US government bonds, while European stock markets closed in the red. Wall Street, on the other hand, closed in the green, supported by hopes of interest rate cuts and the performance of Tesla and Amazon, whose leaders, Elon Musk and Jeff Bezos, are seen as Trump's allies.
Country by Country Tariffs: The List
- China: 34%
- EU: 20%
- Switzerland: 31%
- United Kingdom: 10%
- Japan: 24%
- India: 26%
- South Korea: 25%
- Indonesia: 32%
- Cambodia: 49%
- Thailand: 36%
- Taiwan: 32%
Russia excluded: the reason
Russia was excluded from the tariffs because of existing sanctions that have drastically reduced trade between the two countries.
Article published on 3 April 2025 - 08:01
The idea of tariffs is complicated and I don't know if it will work. Markets react strangely and it could have negative effects on the US economy in the long run. It will be interesting to see how this develops.