Key points
- Trump imposes tariffs on allies and friends
- EU and China have vowed retaliation against levies
- Some of the worst-hit trading partners are in Asia
WASHINGTON: US President Donald Trump intensified a global trade war Wednesday as he slapped sweeping tariffs on imports from allies and foes alike, sending markets into a tailspin and upending decades-long free trade norms.
The EU and China vowed retaliation against the levies, with Australia’s leader saying the new tariffs were “not the act of a friend” and would hurt the close allies’ relationship, according to AFP.
Shortly following Trump’s proclamation, separate tariffs of 25 per cent on all foreign-made vehicles and light trucks went into effect, with auto parts also due to be hit by May 3, US media reported.
Trump has unveiled particularly stinging tariffs on major trade partners China and the European Union (EU) on what he called “Liberation Day”, AFP reported.
“This is one of the most important days, in my opinion, in American history,” said Trump. “It’s our declaration of economic independence.”
Immediate anger
The tariffs announcement triggered immediate anger worldwide, with rival China warning they could “endanger” global economic development.
Stock markets also looked set for major volatility Thursday, with Tokyo’s Nikkei leading an Asian selloff, collapsing more than four percent, and Hanoi shares tanked more than five percent after Vietnam was targeted with tariffs of 46 percent, AFP reported.
US futures plummeted and safe haven gold hit a new record as investors took fright, US media reported. Trump reserved some of the heaviest blows for what he called “nations that treat us badly.”
That included an additional 34 per cent on goods from China — bringing the new added tariff rate there to 54 percent, Western media reported.
Beijing swiftly vowed countermeasures and called for talks, warning the levies would “seriously harm” those involved, according to media reports.
The figure for the European Union was 20 per cent, and 24 per cent on Japan, whose trade minister called the tariffs “extremely regrettable.”
For the rest, Trump said he would impose a “baseline” tariff of 10 per cent, including another key ally, Britain.
Trump brushed off fears of turmoil, insisting that the tariffs would restore the US economy to a lost “Golden Age.”
‘Make America wealthy again’
A hand-picked audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump promised tariffs would “make America wealthy again”, AFP reported.
Trump labeled Wednesday’s tariffs “reciprocal” but many experts say his administration’s estimates for levies placed on US imports by other countries are wildly exaggerated, AFP reported.
US Treasury Secretary Scott Bessent warned against countermeasures, saying on Fox News: “If you retaliate, there will be escalation.”
Some of the worst-hit trading partners were in Asia, including 49 percent for Cambodia, 46 percent for Vietnam and 44 percent for Myanmar, recently hit by a devastating earthquake.
