NEWSBRIEF: UNITED STATES – Donald Trump’s trade war with China and allies like Canada, EU countries, Mexico, among others has left the world’s economy in a tensive state with fears of a global recession. On 2nd April, Trump announced reciprocal tariffs to over 180 countries in what he called the “Liberation Day” with a 10% baseline tariff.
Notable Tariffs Imposed by Country/Region
Donald Trump has been a vocal critic of American trade partners with his claim that Americans “are not being treated fairly in trade.”
Through this, he has declared a national emergency in what the Whitehouse says is to increase American competitive edge, protect American sovereignty and strengthen both the national and economic security.
European Union Tariffs
Trump imposed a 20% tariff as compared to the 39% that the EU charges the US.
Tariffs on China
China will be paying a 34% tariff on Chinese imports, raising the overall tariff on China to 54%.
Japan Tariffs
Japan will be paying 24% in levies as compared to the 46% it charges the US.
Tariffs on India
India will be paying a 26% in levies as compared to the 52% it charges the US.
How Nations are Responding to the New Reciprocal Tariffs
Trump has touted the tariffs as a discounted reciprocal tariff since to him, the trade partners have been “taking advantage of America.”
On the other hand, nations hit with the tariffs has criticized the move, with China saying that there’s no winner in trade wars and only dialogue can solve the issue.
Canada’s new PM Mark Carney has vowed to fight back after Trump imposed a 25% tariff, with the two neighbors trading more threats against each other.
The 10% baseline tariff will go into effect on Saturday – April 5, with the reciprocal tariffs against individual country taking effect from April, 9.
How this unfolds remain to be witnessed. The State Signal will keep you updated.