President Donald Trump’s higher rates will kick in on April 9|@WhiteHouse|X
President Donald Trump announced sweeping tariffs on US imports on Wednesday, targeting more than $3 trillion in imported goods.
In his Rose Garden speech, Trump announced a minimum 10% baseline tariff on all imports into the country along with higher reciprocal levies on nations that he said have engaged in unfair trade practices.
The administration calculated reciprocal charges after taking into account all kinds of levies and barriers that other nations impose on US products. According to the president, the US will charge only half of what those countries levy on imports from the US.
The White House said the rates will kick in on April 9 and include a 34% tariff on China. Along with the 20% levy announced by Trump earlier, the total tariff on the Southeast country exceeds 50%. The European Union, Japan, and Vietnam will see 20%, 24%, and 46% tariffs, respectively.
Trump justified the move by stating that foreign nations have benefited at America’s expense for years. His administration argues that these tariffs will create jobs and rebuild US industries.
Market turmoil and global response
Trump’s announcement triggered a sharp market selloff. US Treasury yields dropped to a five-month low, gold surged to a record high, and stocks in Europe and China tumbled. The dollar weakened while the yuan fell.
Chinese authorities condemned the tariffs and vowed to respond. The European Union is preparing countermeasures, while Japan and other Asian nations seek exemptions.
The US has also ended duty-free shipping for small parcels from China, further straining trade relations.
Economists warn that the tariffs could slow US growth, increase inflation, and push some countries into recession.
The administration argues the policy will revive American manufacturing, but consumers may face higher prices.