On April 2, US President Donald Trump announced a variety of new tariffs affecting both allies and adversaries. Among these, a 10% levy was introduced on most imports into the US, along with specific “reciprocal” tariffs targeting countries that Trump perceives as having engaged in unfair trade practices with the US.
This includes tariffs of 20% on the European Union and a 34% tariff on Chinese products (in addition to a previously announced 20% tariff), among others. The highest tariff, 50%, was applied to Lesotho, a small southern African nation.
Several countries, such as Russia and Belarus, are exempt from these tariffs, while Ukraine is not.
The baseline 10% tariffs became effective on April 5, and the custom tariffs are set to begin on April 9, leaving affected countries with limited time to respond. These tariffs have already caused a decline in stock markets worldwide, with some experiencing their worst losses since the global Covid pandemic.
Several countries have sought negotiations with the Trump administration to reduce the tariffs. On the other hand, some countries are retaliating in kind. China, the world’s second-largest economy, announced its own reciprocal measures last week, matching the US’ 34% tariffs.
Despite the negative impact on Chinese markets, Beijing hopes that the turmoil will ultimately positioning itself as a more reliable option for investment and trade. The majority of economists agree that the tariffs will have a detrimental effect on the US economy, potentially triggering a recession.
However, Trump has indicated his willingness to accept the damage, viewing the shock measures as necessary to rectify perceived unfair trade imbalances. “They are coming to the table. They want to talk but there’s no talk unless they pay us a lot of money on a yearly basis,” he stated. Economists have pointed out that this is not how global trade typically operates.
Source: https://www.dw.com/en/trump-tariffs-eu-ministers-to-meet-as-global-markets-tumble/live-72157811?maca=en-rss-en-all-1573-rdf
