President Donald Trump has announced that new tariffs set to be unveiled this week will affect all nations, not just those with significant trade imbalances with the US. These measures, which will be imposed on top of existing tariffs on aluminum, steel, vehicles, and increased levies on goods from China, are part of what Trump has dubbed America’s “Liberation Day.” Shares in Asia have plummeted as investors worry about the impact on the global economy. Contrary to initial indications, Trump has stated that all countries, not just those with substantial trade deficits, will be targeted. This approach aligns with Trump’s strategy of using tariffs as a means to protect the US economy from unfair competition and as a bargaining chip for better trading terms. The tariffs could potentially raise trillions of dollars and create jobs, according to advisers. However, concerns about a trade war and the possibility of a recession in the US are causing market instability. Other countries such as the EU and Canada are preparing retaliatory trade measures. Meanwhile, Trump has stated that a deal with TikTok’s Chinese owner ByteDance to sell the app will be agreed upon before the deadline on Saturday.

Source: https://www.bbc.com/news/articles/czjny8kee1zo