US President Donald Trump has ignited a potential global trade war by imposing sweeping 10 percent tariffs on imports from around the world, along with significantly higher levies on key trading partners.
The controversial move, announced in the White House Rose Garden, has sent shockwaves through global markets and drawn sharp criticism from allies and rivals alike.
Trump’s tariffs, which he referred to as a step toward economic liberation, have particularly targeted China and the European Union. The announcement has provoked immediate backlash, with US ally Australia calling the tariffs unwarranted and Italy condemning them as wrong. Several nations have already vowed retaliatory measures against the US.
For decades, our country has been looted, pillaged, and exploited by other nations—both allies and adversaries, Trump declared during his speech. His remarks were met with applause from an audience that included cabinet members and industry workers from sectors such as steel, oil, and gas.
The financial markets reacted swiftly. Although Wall Street was closed when Trump made his announcement, the S&P 500 dropped 1.5 percent in after-hours trading, while the US dollar initially fell one percent against the euro before rebounding. Additionally, China’s yuan ended the day at a one-month low as markets braced for the full impact of Trump’s tariff policies.
Among the hardest-hit countries, China faces a staggering 34 percent tariff on its exports to the US, while the European Union and Japan will be subjected to 20 percent and 24 percent tariffs, respectively. Trump, holding up a chart displaying the new levies, claimed he was being generous by imposing only half the amount that worst offenders tax US goods.
Trump’s baseline 10 percent tariff will also apply to Britain, despite the country’s efforts to negotiate exemptions. Canadian and Mexican imports, however, remain unaffected, as Trump has already imposed separate levies on them due to their alleged failure to curb fentanyl trafficking.
The administration insists that the tariffs will usher in a new Golden Age for American manufacturing, with Trump vowing they will make America wealthy again. However, many experts warn of the risk of economic downturn and escalating global trade tensions. US Treasury Secretary Scott Bessent cautioned foreign governments against retaliatory tariffs, warning on Fox News, If you retaliate, there will be escalation.
Trump’s tariff policies have especially rattled Asian economies, with Cambodia, Vietnam, and Myanmar facing tariffs of 49 percent, 47 percent, and 44 percent, respectively. Lesotho, a small African nation, has been hit with the highest tariff rate of 50 percent. Trump recently dismissed Lesotho as a country nobody has ever heard of.
Australian Prime Minister Anthony Albanese called the tariffs totally unwarranted and suggested they would negatively impact US-Australia relations. Meanwhile, Italian Prime Minister Giorgia Meloni, a close Trump ally, admitted the EU tariffs were wrong but expressed willingness to negotiate a compromise with Washington.
Despite widespread criticism, Trump remains steadfast in his belief that tariffs are the ultimate solution to America’s economic challenges. He insists they will lead to the rebirth of US manufacturing, urging companies to relocate their production facilities to the United States to avoid tariffs. As the global economy braces for the impact, Trump’s aggressive trade policies signal a shift toward economic nationalism and a reordering of global trade relationships.