Trump Announces 10% Universal Tariff, With Higher Rates on Select Imports

Credit: BBC

US President Donald Trump announced on Wednesday that he will implement a 10% initial tariff on all imports to the United States and higher tariffs on some of the nation’s largest trading partners, escalating the trade conflict he initiated upon returning to the White House.

These extensive tariffs would establish new restrictions around the world’s largest consumer market, reversing years of trade liberalisation that have influenced the global system.

Trading partners are likely to react with their counteractions, potentially leading to significantly increased prices for a range of products.

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“It’s our declaration of independence,” Trump said at an event in the White House Rose Garden.

Trump showcased a poster listing reciprocal tariffs, including 34% on China and 20% on the European Union, in retaliation for duties imposed on U.S. goods. Other specifics were not immediately available as Trump continued to voice his longstanding grievances that U.S. workers and companies are negatively impacted by international trade.

The uncertainty has unsettled financial markets and businesses that have depended on trading arrangements established since 1947. The administration noted that the new tariffs would take effect right after Trump’s announcement, although it has yet to release the official notice needed for implementation.

Trump Announces 10% Universal Tariff, With Higher Rates on Select Imports
Photo: BBC

However, the administration did publish an official notice indicating that a different set of tariffs on auto imports, announced by Trump last week, will begin on April 3. Trump has already placed 20% tariffs on all imports from China and 25% on steel and aluminum, extending these to nearly $150 billion worth of downstream goods.

His advisors argue that the tariffs will help restore crucial manufacturing capabilities within the United States.

Concerns over tariffs have already slowed manufacturing activities worldwide, while simultaneously driving up sales of vehicles and other imported goods as consumers hurry to make purchases before prices increase.

Financial markets experienced volatility as investors anticipated Trump’s announcement. U.S. stocks have lost nearly $5 trillion in value since February.

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