BBC News, New York
President Donald Trump has announced a new import tax on all goods entering the United States, in the greatest upheaval of the international trade order after World War II.
His plans, consistent with his proposal at last year’s White House campaign, set a 10% baseline tariff on all imports.
Items from around 60 trading partners, known as the “worst criminals” by the White House, including the European Union and China, face higher fees — recovery on unfair trade policies, Trump said.
Analysts said the trade war escalation would likely result in American prices increasing and slowing US growth, but some countries around the world could plunge into a recession.
But in a statement Wednesday at the White House, Trump said action was necessary as the country is using the United States by imposing high tariffs and other trade barriers.
The Republican president declared a national emergency, saying that the United States has been “possessed, plundered, raped and plundered by both friends and enemies” for more than 50 years.
“It’s a declaration of our economic independence,” Trump said he was in Rose Garden with the US flag in the background.
The White House says the US will begin claiming 10% tariffs on April 5, with higher duties in certain countries beginning on April 9.
“Today, we are standing up for American workers and finally put America first,” Trump said.
His decision surprised many analysts.
“He just dropped a nuclear bomb on the global trading system,” Ken Rogoff, former chief economist at the International Monetary Fund, told the BBC.
Canada and Mexico are not affected
Customs duties are taxes on imports. On last year’s campaign trail, Trump said he would use them to boost production and promise a new era of America’s prosperity.
He spent weeks on Wednesday’s announcement, spending 25% on some goods from Mexico and Canada, following other orders that will raise tariffs from imports from China, foreign cars, iron and aluminum.
For now, the White House said the existing measures will not change anything the latest changes for two of America’s closest trading partners, Mexico and Canada.
The White House said items such as steel, copper and medicine that have already been threatened or announced, which are already facing separate tariffs, have also not been affected by Wednesday’s actions.
But other allies will face new tariffs, including 10% in the UK and 20% in the European Union, Trump said.
The measure will introduce a new 34% tariff on goods from China, in addition to the existing 20% ​​collection, bringing total obligations to at least 54%.
The tariff rate is 24% for products from Japan and 26% for those from India.
Some of the best duties are hit by exports from countries that have seen a rush of investment in recent years as businesses have shunned supply chains from China following tariffs in Trump’s first term.
Products from Vietnam and Cambodia reach 46% and 49% respectively.
Also, higher collections are found in much smaller countries, with South Africa’s Lesotho products facing 50%.
Treasury Secretary Scott Becent warned other countries not to fight back.
“Don’t retaliate with my advice to all countries right now,” Bessent told Fox News.
“Sit down, take it in and see what it goes, because if you retaliate, there’s escalation,” he said. “If we don’t retaliate, this is a high watermark.”
But China’s Commerce Department later said it would “sturdy” oppose the new US tariffs and “take decisive measures to protect its rights and interests.”
European Commission President Ursula von der Leyen also said he is preparing to take further action against the US in the event of a failed negotiation.
The new obligation could affect trillions of dollars in trade and set the stage for higher US prices with clothing, European wine, bicycles, toys and thousands of other items.
Or Sonora, head of US economic research at the Fitch Rating Agency, said the measure would bring to the 1910 US tariff rates.
“Many countries will probably be in a recession,” he said.
The US stock market was closed for trading by the time Trump made his announcement, and he called it “liberation day.”
However, Asia-Pacific shares opened on Thursday morning.
Japan’s benchmark stock index, Nikkei 225, fell 4% in early trading. Australia’s ASX 200 was about 2% lower.
Dan Ives of Wedbush Securities Analyst described the tariffs as “worst than the worst” that investors had expected.
However, he said he believes there will be negotiations and exemptions.
Getty ImagesTrump describes his measure as “mutual” – he intends to say the imbalance of high-fuel trade in retaliation for other countries’ policies.
These include regulations prohibiting food products with high tariffs, value-added tax (VAT) or traces of certain chemicals.
Trump also revived plans to end tax-free handling of small packages from China as of May. This is a move that hurts Amazon rivals such as Shein and Temu.
He confirmed that the 25% tax on imports of all foreign-made cars announced last week begins at midnight.
