Donald Trump has introduced extensive tariffs on key trading partners, raising fears of a global trade war. The move, described as a landmark moment, signals a dramatic shift in America's economic strategy.
A 10% universal tariff will be applied to all foreign imports, alongside additional levies targeting specific nations accused of exploiting trade relationships. The universal tariff takes effect on April 5, while the additional charges will commence on April 9.
The announcement follows months of uncertainty, during which Trump’s repeated threats to impose tariffs have unsettled global markets, worried business leaders, and strained relations with major trade partners. During his remarks, Trump highlighted what he considers unfair trade practices, displaying a chart comparing fees imposed on US exports with the new reciprocal tariffs.
The White House claims China has charged the US 67% in unfair fees, now countered by a 34% levy. Similarly, the EU’s 39% charge will be met with a 20% tariff, while the UK is set to face the baseline 10% charge, deemed equivalent to its own import duties on American goods.
Exceptions have been granted to Canada and Mexico, which were previously targeted under broad tariff proposals. Existing trade agreements will ensure that goods from these countries remain unaffected. The White House has also suggested that factors such as currency manipulation and non-monetary trade barriers have been considered in the tariff calculations, though no details have been provided.
The president criticised industry-specific restrictions imposed by other nations, such as the EU’s ban on US poultry, Canadian dairy tariffs, and Japan’s levies on rice. He justified the new charges as necessary countermeasures, claiming they were fair responses to years of economic harm.
This decision fulfils a longstanding pledge from his election campaign, where he floated the idea of a 10% universal tariff. It builds on previous trade measures, including a 20% tariff on Chinese imports, 25% duties on steel and aluminium, and a 10% levy on Canadian energy imports. In March, additional tariffs of 25% were announced for imported vehicles and auto parts, set to begin implementation on Thursday.
The tariffs have already strained US relations with major trade partners. Canada’s prime minister, Mark Carney, has condemned the measures as unjustified and vowed to respond. The European Union has also signalled plans for countermeasures, with retaliatory tariffs likely to increase costs for American exporters.
Economic forecasts from major financial institutions, including Goldman Sachs and JP Morgan, suggest that ongoing trade tensions could heighten the risk of a recession. The uncertainty surrounding US trade policy continues to cast a shadow over global markets, with potential long-term repercussions for businesses and consumers alike.
