The U.S. President, Donald Trump, is set to enact sweeping new tariffs in a move that could escalate trade tensions globally.
Details of the tariffs remain uncertain as the Trump administration finalises specifics ahead of a scheduled 4pm Eastern Time (9pm GMT+1) announcement in the White House Rose Garden, reports CNN.
The tariffs are expected to take immediate effect following Trump’s declaration, with a separate 25% tariff on auto imports slated to begin on April 3.
The measures are expected to prompt retaliatory responses from key trading partners.
Trump declared in a post on his Truth Social platform on Wednesday that “it’s liberation day in America!” but provided no further details.
Trump, a long-time advocate for tariffs, has described them as “the most beautiful word in the dictionary,” arguing that the new levies are designed to level the playing field against what he described as unfair trade barriers imposed by other nations.
Reacting to the tariffs, European Central Bank President Christine Lagarde warned in an interview with Ireland’s Newstalk radio that the measures would have widespread negative consequences.
“It will be detrimental worldwide, with varying intensity and duration depending on the scope, targeted products, and potential negotiations,” she stated
Business leaders across multiple industries, from automobiles to luxury goods, await clarity as Trump exercises emergency powers to swiftly impose, remove, and reinstate tariffs.
Peter Sand, chief analyst at freight pricing platform Xeneta, told CNN that, “It’s nearly impossible to make strategic supply chain decisions when the rules keep shifting.”
Italian Prime Minister Giorgia Meloni, who has maintained a diplomatic approach toward Trump, warned that the tariffs could severely impact Italian businesses and prove “unfair” for American consumers.
“A trade war benefits neither the United States nor Europe,” she stated.
Since returning to office on January 20, Trump has implemented a 20% tariff on all Chinese imports due to concerns over fentanyl production and reinstated 25% duties on steel and aluminum, extending these tariffs to nearly $150bn in downstream products.
A temporary halt for most Canadian and Mexican goods from the 25% fentanyl-related tariffs was implemented, however, it is set to expire on Wednesday.
Key trading partners, including the European Union, Canada, and Mexico, have vowed to retaliate with countermeasures, while some nations attempt to negotiate exemptions.
Australian leaders, including Prime Minister Anthony Albanese and opposition leader Peter Dutton, have pledged to defend their country’s beef exports against potential U.S. tariffs.
Meanwhile, Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum have discussed strategies to counteract what they consider “unjustified trade actions” from the U.S., according to Carney’s office.
Trump argues that American workers and manufacturers have suffered under past free-trade agreements that facilitated a $3tr market for imports and contributed to a $1.2tr goods trade deficit.
However, economic analysts warn that a broad 20% tariff could cost the average U.S. household at least $3,400 annually, according to the Yale University Budget Lab.
Global Markets Brace For Impact As Trump’s Tariffs Take Effect is first published on The Whistler Newspaper
Source: The Whistler
