<
div id=”liveblog-body”>
Trump tariff rate ‘last seen around 1910’
The 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.”
<
article id=”block-67ed35918f08d1ca047136a6″ class=”block dcr-1os4bxs”>
Opening summary
Hello and welcome to our live coverage of reaction to the latest Trump tariffs, which were more aggressive than expected against major US trading partners and which sent shockwaves through global markets.
“This is the worst-case scenario that the market was expecting and that’s enough to potentially send the US into a recession,” said Jay Hatfield, CEO at Infrastructure Capital Advisors.
Speaking in the White House Rose Garden against a backdrop of US flags on what he called “Liberation Day”, Trump slapped sweeping 10% tariffs on imports from around the world.
He also unveiled particularly stinging tariffs of 34% on China, 20% on the European Union and 24% on Japan, saying they were “nations that treat us badly.”
He also hit some of the world’s poorest countries and those struggling with wars and natural disasters: Myanmar, which is embroiled in civil war and which was struck last week by a devastating earthquake, was hit with tariffs of 44% while Sri Lanka was hit with rates of 44%, Bangladesh a rate of 37%, Cambodia 49% and Syria 41%.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said.
Wall Street was closed when Trump made his announcement but the S&P index was down 1.5% in after-hours trading. The dollar fell 1% against the euro as he was speaking, but then recovered.
US stock futures fell on the announcement, with S&P 500 E-minis down 3.5%, while the euro was down 0.3%. Markets in Asia are beginning to open now. We’ll bring you all the latest developments as they happen.
In the meantime, here’s what you need to know:
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”.
<
footer class=”dcr-3i7iba”>
