As President Trump prepares to unveil extensive tariffs on imports this week, he asserts that these measures will apply universally to all countries. This announcement has sent shockwaves through global markets, raising fears of economic repercussions and potential recessions.
### Trump Announces Sweeping Tariffs Affecting All Countries
### Trump Announces Sweeping Tariffs Affecting All Countries
President Trump indicates new tariffs targeting global imports in what he calls America's "Liberation Day," raising concerns about a potential trade war.
President Donald Trump has revealed that he will announce new tariffs applying to all nations, moving beyond those with existing trade imbalances with the United States. Set to be disclosed this Wednesday, the president refers to this initiative as America's "Liberation Day." The forthcoming tariffs build on previous import duties on aluminum, steel, and vehicles, along with escalated tariffs on Chinese goods.
As investors reacted to the looming tariffs, Asian stock markets experienced declines; Japan's Nikkei 225 index dropped over 3%, with Australia's ASX 200 and South Korea's Kospi falling by 1.6% and 2%, respectively. During a press interaction aboard Air Force One, Trump stated, "You'd start with all countries." His comments diverged from hints made last week about potentially scaling back on some tariffs.
White House economics adviser Kevin Hassett had previously indicated that the tariffs might zero in on 10 to 15 nations with the steepest trade deficits against the US but refrained from identifying these countries. Trump believes that tariffs can shield the US economy from unfair competition, serving as leverage for negotiating better trade agreements.
Trump's advisors assert that the planned tariffs could generate trillions in revenue and bolster job creation domestically. Senior trade advisor Pete Navarro claimed that a tax on car imports alone could net approximately $100 billion from a total $240 billion in trade. According to a recent White House fact sheet, a 10% tariff across the board might lead to nearly 3 million new jobs in the United States.
However, fears of a full-blown trade war are weighing heavily on financial markets, raising the stakes for countries negotiating trade agreements with the US, including the United Kingdom. The European Union and Canada have announced they are preparing retaliatory measures in response to Trump’s tariff strategy.
In a separate matter, Trump mentioned that a deal to divest the US operations of the TikTok app from its Chinese parent company ByteDance would be finalized before his set deadline on Saturday. This follows legislation from the Biden administration requiring the app to find a non-Chinese buyer by early April to avoid a ban due to national security concerns.
