US President Donald Trump unveil The long -awaited “mutual” tariff plan, in a move that sent financial markets to reeling amid increasing fears of a global trade war.
On Wednesday, Trump announced the “minimum baseline tariff” by almost all imports to the United States. Training will be on top duties on the target countries shortly after.
He claimed that the new import taxes were designed to reduce the trade deficit and re -manufacturing foreign to American beaches. He also said they would pave the way for discounts in the tax future.
While Trump was aiming at a global trading system, the United States “tears”, Definitions It pushed an immediate violent reaction, with some of the largest commercial partners in America.
What has been announced?
Upon summoning the 1977 Economic Forces Law, Trump announced a 10 percent tariff for all countries, which is scheduled to enter into force on April 5.
Then he revealed that there will be there “Individual” definitions For countries with large trade surpluses with the United States or that impose higher duties on American imports. These definitions will enter into force after four days, on April 9.
Trump explained that his team calculated “individual” customs duties by taking half of what he claimed that these countries accused the United States of exports.
As such, the European Union is heading to 20 percent of the customs tariff, while the United Kingdom was slapped with 10 percent.
Meanwhile, China has been appointed by 34 percent – in addition to the 20 percent definitions that Trump has already imposed on Chinese imports since its arrival on his post on January 20. Vietnam will be 46 percent, and Thailand 36 percent.
Mexico and Canada, the largest commercial partner in the United States and its direct neighbors, were missing from the list, but they are already facing 25 percent of exports to the United States un noted by the US and Mexican Trade Agreement (USMCA).
The mutual definitions will not apply to some commodities such as copper, semi -conductors, energy and “some minerals that are not available in the United States,” according to the White House reality newspaper.
The mutual definitions may also be subject to change. According to the White House document, customs duties may be negotiated with commercial partners “who take important steps to treat unstable trade arrangements.”
What did Trump said?
“For decades, our country was looted, looted, raped and looted by near and far nations, both a friend and enemy,” Trump told an audience of manufacturing workers, members of the cabinet and journalists.
“Foreign leaders have stolen our jobs. Foreign chests have looted our factories. Foreign Zuboon dismantled our unprecedented American dream.”
But he announced that Wednesday would represent a turning point in the history of the United States, which represents an end to “evil attacks” he said the country had survived.
Trump said: “April 2, 2025, will be remembered forever as the American industry was born again, the day when the fate of America was reclaimed,” Trump said.
Trump said: “We will impose nearly half of what they are – and they are receiving us. Therefore, the definitions will not be complete.”
He added: “I could do that, I think, but it was difficult for many countries. We didn’t want to do so.”
What did the targeted countries say in response?
Within minutes of Trump’s announcement, world leaders began to condemn the definitions as harmful.
China She said in a statement that the Ministry of Commerce promised “counter measures to protect its rights and interests” in response to “bullying.” American definitions on China are now 54 percent effectively.
While Beijing stopped saying it would impose anti -retaliatory measures, the statement has read, “The United States has drew the so -called” mutual definitions “based on self -assessments and unity, which are not consistent with international trade rules.”
The Trump administration urged to cancel the definitions and “solve the differences properly with its commercial partners through an equal dialogue.”
For one time, Beijing and Tibet seemed on the same page.
Taiwan Description of the definitions “very unreasonable”. Michelle Li, a cabinet spokeswoman Michelle Li, said that Tibet “strongly regret” Trump’s announcement of a 32 percent tariff for her exports.
Australian Prime Minister Anthony Albaniz said that the definitions are “not a friend” and “completely unjustified”.
European Commission President Ursula von der Layen, who responds to a 20 percent new tariff for the European Union, described the scale “a major blow to the global economy.”
“The consequences will be terrible for millions of people all over the world,” she said, adding that grocery, transport and medicine will cost more.
until CanadaWhich was exempt from the latest definitions, harmonious.
“During this crisis, we must act with a goal,” Canadian Prime Minister Mark Carney books On social media. “My government will fight the definitions,” he said.
What countries will reach their own measures?
Since the mutual definitions will not start until April 9, the two countries have six days to try to agree with the Trump team. But some may respond with revenge definitions.
Canada It is one of the many American commercial partners who pledged to respond to definitions with reprisals.
At the same time, and European Union “Ready for a trade war” with the United States and can “attack services online.”
She said that the European Union was preparing to refute two phases, with a “initial response”, to be placed in a place in mid -April, regarding aluminum and steel.
After that, the European Union will also target “all products and services”, with measures that may be ready at the end of April, adding that this is still being discussed.
“China is likely to export a kind of revenge …”, Nick Maru, the main economist in the Economic Intelligence Unit of Al Jazerera.
What countries are likely to prefer diplomacy?
MexicoMeanwhile, it has been involved. On Wednesday, Mexican President Claudia Shinbom said it would avoid following the tariff “Tit for Tat”.
Similarly, British Prime Minister Kiir Starmer ruled out immediate revenge, and promised on Thursday to maintain a “cold head … in the coming days.”
Business Secretary Jonathan Reynolds told the House of Commons on Thursday that Westminster was in talks with Washington to secure a deal aimed at avoiding or reducing definitions in the United Kingdom.
Also in Asia, a few countries will be ready to confront Trump and risk more revenge.
Regardless of China, “many other Asian markets are not in a position that is allowed to take revenge”, due to “the importance of the United States as a source of final demand.”
Dario Berkins, Managing Director of TS Lombard-a London-based financial research company-has widely agreed, and said on a large scale and said that most countries would prefer “other policy tools” over the revenge definitions.
“I think central banks will reduce monetary policy (by reducing interest rates to try to enhance growth),” Berkins told the island of the island.
However, he said that “global trade will be much weaker and international supply chains will be shortened. The multilateral age will die.”
How did the markets respond?
From the United States to Asia, The markets fell With investors ready to shift towards protectionism by the largest economy in the world since the 1930s.
Dow Jones Industrial Average lost 2.6 percent on Wednesday, which led to losses in the near -term American companies.
The DAX index in Germany fell 1.7 percent on Thursday, while CAC 40 in Paris threw 1.8 percent. Britain lost FTSE 100 1.2 percent.
In Asian trading, the Nikkei 225 index in Tokyo decreased by 4 percent for a short period on Thursday, as auto and banking companies have achieved great successes.
As global stocks drop, investors rushed to buy gold-one of the traditional assets of safe during periods of market fluctuations.
The precious metal recorded the highest standard level of $ 3,167.84 an ounce (28.3 g) on Thursday, before the exfoliation earned some extent.
Players in the market are concerned about the dismantling of international supply chains, the effects of inflation and even stagnation, Not the least in the United States.
Goldman Sachs recently raised his appreciation for the possibility of an American recession in the next 12 months to 35 percent, an increase of 20 percent previously.
UBS distributed a note on Thursday, saying: “It is reasonable that the real GDP (in 2025) may be at risk by 1.5-2 percent and inflation may rise to approximately 5 percent if these definitions are not reversed soon.”
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