U.S. President Donald Trump has unveiled sweeping new tariffs on imports, including a baseline 10% levy and higher rates for certain nations—sparking market chaos and international outcry. The policy, framed as a bid to boost U.S. manufacturing, took aim at trade partners with large deficits, escalating tensions in a fragile global economy.
The New Tariff Blueprint
Starting April 5, nearly all imports will face a 10% duty, with steeper penalties kicking in days later for 60+ countries. Key exemptions include pharmaceuticals and semiconductors, while Canada and Mexico get mixed relief under USMCA rules. China faces a 34% rate, the EU 20%, and Vietnam 49%—figures Trump claims offset foreign "trade barriers" and currency tactics.
Markets Tumble, Critics Warn of ‘Tax Hike’
U.S. stocks plummeted post-announcement, erasing $5 trillion in value since February. Economists slammed the move as a "regressive tax" on Americans, fearing inflation spikes and global recessions. Rep. Gregory Meeks (D-NY) called it "reckless," vowing legislative pushback unlikely to pass Congress.
Global Backlash Brews
From Australia to the EU, leaders pledged retaliatory measures. Italy’s PM warned of weakening the West, Canada vowed a "fight," and Brazil fast-tracked its retaliation framework. As trade wars loom, analysts predict higher prices for everything from bikes to Bordeaux.
The policy, framed as a bid to boost U.S. manufacturing, took aim at trade partners with large deficits, escalating tensions in a fragile global economy.
