02/04/2025 23:52
The Guardian
US president has announced aggressive tariffs targeting US allies on what he has dubbed ‘Liberation Day’Full report: Trump announces sweeping new tariffs, upending decades of US trade policyAnalysis: Trump’s wall of tariffs is likely to raise prices and cause chaos for businessThe US tariff rate on all imports has rocketed to 22% from just 2.5% in 2024 under the new global levies imposed by President Donald Trump, Fitch Ratings’ U.S. economic research chief said on Wednesday. Reuters reports:“That rate was last seen around 1910,” Olu Sonola, Fitch’s head of US economic research, said in a statement after Trump’s announcement for a global baseline import tax of 10%, but much higher rates for many trading partners.“This is a game changer, not only for the US economy but for the global economy,” Sonola said. “Many countries will likely end up in a recession. You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time.”The 10% universal tariff will go into effect on 5 April while the reciprocal tariffs will begin on 9 April.Special exceptions were made for Canada and Mexico, though the countries were previously targets of proposed broad tariffs. The White House said that goods covered by an existing trade deal with Canada and Mexico will continue to see no tariffs.Trump said the US would charge half of the fees he feels trading partners unfairly impose on the US because the US people are “very kind”.Trump zeroed in on the industry-specific tariffs countries have placed on American exports. In his speech, Trump criticized policies like the EU’s ban on imported chicken, Canadian tariffs on dairy and Japan’s levies on rice.The new tariffs come on top of a lineup of levies that Trump has already implemented: an additional 20% tariff on all Chinese imports and a 25% tariff on all steel and aluminum imports. There is also a 10% tariff on energy imports from Canada.Sweeping auto tariffs of 25% that Trump announced last week are also due to take effect at 12:01 am (0401 GMT) on Thursday.US Treasury Secretary Scott Bessent warned nations not to impose countermeasures, saying on Fox News: “If you retaliate, there will be escalation.”Leaders around the world criticised the tariffs, with Australian prime minister Anthony Albanese calling them “totally unwarranted” and his Italian counterpart, Giorgia Meloni, a close Trump ally, saying they were “wrong”. Continue reading...
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