In a significant statement, President Donald Trump revealed that upcoming tariffs will affect all nations, diverging from previous indications focused solely on countries with substantial trade deficits. As markets react with apprehension, the implications for the US economy and global trade relationships intensify.
New Tariffs to Impact All Nations, Trump Declares
New Tariffs to Impact All Nations, Trump Declares
President Trump announces broad-reaching tariffs set to be revealed this week, raising global trade concerns.
Trump's rhetoric, delivered during a flight on Air Force One, clarified that the tariffs would be expansive, encompassing nearly all countries, marking a notable shift from his recent hints at a more selective approach. This announcement coincides with his scheduled unveiling of a comprehensive import tax plan on Wednesday, which he characterized as "America's Liberation Day."
Currently, the US already enforces tariffs on various imports, including aluminium, steel, and vehicles, alongside increased levies on all goods from China. Investor confidence took a hit as Asian markets demonstrated a downward trend, reflecting fears over the potential ramifications of the tariffs on global economic stability.
"You'd start with all countries," Trump stated, indicating his administration's desire to implement tariffs broadly rather than targeting a specific subset of countries. This approach contrasts with earlier comments from White House economic adviser Kevin Hassett, who suggested that the tariffs would concentrate on 10 to 15 nations exhibiting the largest trade deficits with the US.
Trump's administration posits that tariffs serve as protective measures for the US economy against perceived unfair competition and can act as leverage for negotiating improved trade agreements. Within this context, Administration officials have echoed the sentiment that these new tariffs could yield significant revenue streams, potentially amounting to trillions of dollars and aiding in job creation.
Pete Navarro, one of Trump's top trade advisers, estimated that a tax on car imports alone could generate $100 billion from a trade value of $240 billion. Overall, projections suggest that the tariffs could raise approximately $600 billion, representing around 20% of the total imports entering the US. A recent White House report argued that a uniform 10% tariff on imports might stimulate nearly 3 million jobs domestically.
However, despite the administration's optimistic projections, trepidations surrounding a possible trade war are causing market turbulence and raising recessionary fears within the US economy. As a reflection of these concerns, Japan's Nikkei 225 index saw a decline of more than 3%, while Australia's ASX 200 and South Korea's Kospi indices fell by 1.6% and 2%, respectively.
Amidst these developments, countries such as the European Union and Canada are reportedly preparing countermeasures to respond to the US's escalated trade policies. Conversely, Trump indicated progress in the negotiations with TikTok's parent company, ByteDance, aiming for a resolution before the approaching deadline set for Saturday, which mandates the app to secure a non-Chinese buyer to avoid a US ban due to national security issues.
Currently, the US already enforces tariffs on various imports, including aluminium, steel, and vehicles, alongside increased levies on all goods from China. Investor confidence took a hit as Asian markets demonstrated a downward trend, reflecting fears over the potential ramifications of the tariffs on global economic stability.
"You'd start with all countries," Trump stated, indicating his administration's desire to implement tariffs broadly rather than targeting a specific subset of countries. This approach contrasts with earlier comments from White House economic adviser Kevin Hassett, who suggested that the tariffs would concentrate on 10 to 15 nations exhibiting the largest trade deficits with the US.
Trump's administration posits that tariffs serve as protective measures for the US economy against perceived unfair competition and can act as leverage for negotiating improved trade agreements. Within this context, Administration officials have echoed the sentiment that these new tariffs could yield significant revenue streams, potentially amounting to trillions of dollars and aiding in job creation.
Pete Navarro, one of Trump's top trade advisers, estimated that a tax on car imports alone could generate $100 billion from a trade value of $240 billion. Overall, projections suggest that the tariffs could raise approximately $600 billion, representing around 20% of the total imports entering the US. A recent White House report argued that a uniform 10% tariff on imports might stimulate nearly 3 million jobs domestically.
However, despite the administration's optimistic projections, trepidations surrounding a possible trade war are causing market turbulence and raising recessionary fears within the US economy. As a reflection of these concerns, Japan's Nikkei 225 index saw a decline of more than 3%, while Australia's ASX 200 and South Korea's Kospi indices fell by 1.6% and 2%, respectively.
Amidst these developments, countries such as the European Union and Canada are reportedly preparing countermeasures to respond to the US's escalated trade policies. Conversely, Trump indicated progress in the negotiations with TikTok's parent company, ByteDance, aiming for a resolution before the approaching deadline set for Saturday, which mandates the app to secure a non-Chinese buyer to avoid a US ban due to national security issues.
