American President Donald Trump announced his highest and most comprehensive tariffs in a ceremony at the White House on Wednesday (2), stating that he will impose a 10% tax on all trading partners except Canada and Mexico, as well as double-digit tariffs on dozens of other countries.
The measure was a significant escalation of Trump’s trade war and is likely to reverberate through the global economy, raising prices for American consumers and manufacturers while provoking retaliations from other nations. Although Trump has said for weeks that he would impose “reciprocal tariffs,” his announcement went far beyond what many economists and analysts expected.
The tariffs will apply to more than 100 trading partners, including the European Union, China, Great Britain, and India. Under Trump’s plan, the United States will impose a staggering new tariff of 34% on Chinese products—on top of the 20% tariff he imposed on Beijing in recent months—a 20% tariff on imports from the European Union, and a 24% tariff on products from Japan. India will face a 26% tariff on its exports to the United States.
Business groups, trade experts, many economists, Democratic lawmakers, and even some Republicans quickly condemned the tariffs. Officials from several countries protested, with some contemplating retaliations.
The new tariffs will not apply to products that Trump has already targeted with separate taxes, including steel and aluminum, and vehicles and their parts. Energy and “other specific minerals not available in the United States” will also be excluded.
Trump defined his policies as a response to a national emergency, saying that the tariffs were necessary to boost domestic production.
White House officials defended the tariffs, arguing that the harmful trade practices of other countries have led to large and persistent trade deficits for the United States.
Source: AP