Trump Unveils Sweeping Tariffs on China and the EU: Speaking at the White House Rose Garden on what he termed “Liberation Day,” Trump declared the imposition of significant tariffs on China, the European Union, Japan, and India. China faces a 34% tariff on its exports to the US, while the European Union will be hit with 20%. Japan and India will see tariffs of 24% and 26%, respectively.
As Trump announced the measures, the US dollar fell by one percent against the euro and weakened against other major currencies.
“For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike,” Trump stated.
Tariffs Aim to Restore American Manufacturing
Trump defended the tariffs, arguing that they are a step toward revitalizing American industry.
“This is Liberation Day,” he proclaimed, “the day America’s destiny was reclaimed.”
He introduced a 10% baseline tariff on all other trading partners, including the United Kingdom. Additionally, the recently announced 25% auto tariffs will take effect at midnight.
Global Backlash and Economic Repercussions
The move has sparked strong reactions worldwide. Germany warned that trade wars harm “both sides,” while the European Union pledged to retaliate before the end of April. British Prime Minister Keir Starmer emphasized that a trade war serves no one’s interest and warned of potential countermeasures.
Economic experts caution that these tariffs could significantly impact US consumers, as increased costs for imported goods may trigger inflation and recession risks.
“If this trade war continues through Labor Day, the US economy will likely suffer a recession this year,” Mark Zandi, chief economist at Moody’s Analytics, told AFP.
Uncertain Future for Global Trade
Trump has consistently advocated tariffs as a means to reduce trade imbalances and encourage domestic production. However, with US trading partners preparing swift responses, the likelihood of prolonged economic disputes remains high. While previous negotiations halted tariffs on Canada and Mexico, the global economy now braces for the full impact of Trump’s latest measures.
With uncertainty looming, markets and businesses worldwide are closely monitoring developments, hoping for diplomatic solutions to avoid a full-blown trade war.
