Donald Trump starts global trade war: Details
Donald Trump, President of the US (photo: Getty Images)
The tariffs announced today by US President Donald Trump for the country's trade partners worldwide range from 10% to 49% on imported goods. These are the highest American tariffs in a century, raising concerns and confusion among world leaders.
During his speech in Washington near the White House, Trump announced that he would impose at least a 10% tariff on all exporters to the US, with even higher tariffs for about 60 countries, in order to address the significant trade imbalances with the US.
This list includes some of the US's largest trading partners, such as the European Union, Japan, Vietnam, and China. The latter is currently facing tariffs exceeding 50%.
Additionally, Trump declared a state of emergency in the US due to the size of the trade deficit, which grants him special powers to impose tariffs.
The US president also announced a 25% tariff on all foreign car manufacturers.
For Ukraine, a separate tariff of 10% on imports has been introduced.
The new reciprocal tariffs will take effect on April 9. Meanwhile, the minimum baseline tariff will be applied by all countries starting from April 5.
In total, the list published by the White House includes 183 countries and the European Union. Below are some of the countries listed, and we will provide the full list in a photo table.
- Cambodia - 49%
- Vietnam - 46%
- Sri Lanka - 44%
- Thailand - 36%
- China - 34%
- Bangladesh - 34%
- Taiwan - 32%
- Indonesia - 32%
- Switzerland - 31%
- South Africa - 30%
- Pakistan - 29%
- South Korea - 25%
- Japan - 24%
- Malaysia - 24%
- European Union - 20%
- Israel - 17%
- Philippines - 17%
- UK - 10%
- Brazil - 10%
- Singapore - 10%
- Chile - 10%
- Ukraine - 10%
What are the exceptions
It is important to note that the new tariff measures currently do not apply to Canada and Mexico, which are involved in a separate tariff dispute with the US.
Additionally, the US will not impose new tariffs on certain products, including cars, specific steel/aluminum products, auto parts, semiconductors, lumber, ingots, copper, pharmaceuticals, energy, and other specific minerals that are unavailable in the US.
It should also be noted that the reciprocal tariffs from the US do not apply to Belarus, Cuba, Russia, and North Korea.
Tariffs for Asian countries
US Treasury Secretary Scott Bessen has already confirmed that China will face a 54% tariff (34% announced is added to the already existing 20% tariffs imposed by Trump earlier this year due to fentanyl trade).
This means that many of China's imports will face tariffs exceeding 50%. According to estimates from Bloomberg Economics, these tariffs are high enough to destroy most of the trade between the US and China by the end of this decade.
Trump also announced that he will end the duty-free delivery of small packages from China under the so-called de minimis exception.
As for close American partners in Asia, Japan and South Korea will face reciprocal tariff rates averaging 20%, nearly twice as high as for Vietnam.
US urges countries not to take countermeasures
Western analysts have called this move by the US leader a dramatic escalation of Trump's trade war. As Bloomberg reports, this will likely prompt an immediate response from other countries.
Meanwhile, US Treasury Secretary Scott Bessen, after Trump's speech, urged other countries not to take countermeasures, advising them not to seek revenge, and hinted that tariffs could be increased.
The US president allowed for the possibility of lowering tariff rates if trading partners take measures that would benefit American exports. Trump called on foreign leaders to remove their own tariffs, eliminate barriers, and not manipulate their currencies.
Global and economic reaction
The European Union, which is preparing emergency measures to protect its economy, is subject to a 20% tariff. Western media reported that European Commission President Ursula von der Leyen is expected to make a statement regarding the new US tariffs in the morning (Kyiv time).
UK Business Secretary Jonathan Reynolds told the Associated Press, "The US is our closest ally, so our approach is to remain calm and committed to doing this deal." The official added that London is working on a trade agreement to mitigate the impact of the new US tariffs.
Australian Prime Minister Anthony Albanese assured that the country does not plan to join the race... that leads to higher prices and slower growth.
The President of the Swiss Confederation, Karin Keller-Sutter, wrote on her social media account that the country will quickly determine the next steps.
Norwegian Minister of Trade and Industry, Cecilie Myrseth, told the state broadcaster NRK that the country will conduct calculations and get an overall understanding of what this actually means for Norway.
Swedish Prime Minister Ulf Kristersson stated that the country will continue to advocate for free trade and international cooperation.
Ireland's Deputy Prime Minister and Minister for Trade, Simon Harris, stated that the decision by the US regarding the 20% tariff on the EU is regrettable.
New Zealand's Minister for Trade, Todd McClay, said that the country does not intend to respond to the US with counter-tariffs, as it would increase prices for consumers in New Zealand and lead to inflation.
China's Ministry of Commerce has already promised to take countermeasures, although it did not specify what actions Beijing might take. It called on the US to immediately cancel its unilateral tariff measures and properly resolve its differences with its trading partners through dialogue on an equal footing.
Vietnam's Prime Minister Pham Minh Chinh held an urgent cabinet meeting just hours after the Trump administration announced a 46% tariff for the country. According to the Tien Phong newspaper, citing an official representative of the Ministry, trade ministry leaders will present a report on the impact of the tariffs on Vietnam's exports and the prospects for its economic growth.
During the first trades after Trump's announcement, US stock futures dropped by more than 3%, and oil prices fell. Chinese stocks declined, as did the yuan's exchange rate, while the main index of the mainland stock exchange, listed in Hong Kong, started 2.6% lower before recovering some of the losses.
The article used materials from the White House, Donald Trump's speech broadcast, Bloomberg, Reuters, The Guardian, Associated Press, and Fox News.
Earlier, we reported that the European Commission might respond by closing the EU market to American goods.
US President Donald Trump declared a state of emergency in the US to strengthen economic security.
