10:00, today
Media reports say U.S. President Donald Trump is stepping up his massive global trade war, a move that’s certain to weigh on Americans’ wallets and could push the U.S. economy into a painful recession.
CNN reports that Donald Trump yesterday declared a national economic emergency and announced tariffs of at least 10% across all countries, with rates going even higher for 60 countries deemed the “worst offenders,” according to White House officials.
CNN says that according to a poster Trump displayed at a Rose Garden event Wednesday, one of the highest tariff rates of 49% will be levied on all Cambodian imports. Among the other newly announced reciprocal tariff rates are 46% for Vietnam, 34% for China and 20% for the European Union.
China’s reciprocal tariff rate will be levied on top of the 20% tariff Trump already imposed, bringing its total tariff rate to a whopping 54%, CNN says, noting that the United States imported $439 billion worth of goods from China last year, the second top source of imports behind Mexico.
And starting on May 2, the 54% tariff rate will also be applied to packages worth less than $800 coming to the US from China and Hong Kong. This means Americans who order goods from Chinese-based companies like AliExpress, Temu and Shein will have to pay 54% more.
The tariffs, Trump said, “are going to give us growth.” The U.S. president has repeatedly touted tariffs as a way to help the US government rely less on income taxes as a main form of revenue. He’s even gone as far to say that tariff revenue could replace income taxes entirely. But economists are largely in agreement that tariffs are paid by the country importing the goods, and have historically led to higher prices for consumers, according to CNN.
The escalation risks alienating the US further with foes and all the more so with key allies who have been long-time trading partners.
For the time being, the only exception to tariffs will be goods coming from Canada and Mexico that comply with the United States-Canada-Mexico Agreement signed under Trump’s first term.
Meanwhile, France 24 reports that the tariffs will reinforce fears that Trump is backing even further away from US allies towards a new order based on a vision of American supremacy.
Australian Prime Minister Anthony Albanese reportedly said on Thursday that the tariffs were “totally unwarranted” and would change the perception of the relationship with the United States.
Italian Prime Minister Giorgia Meloni, a close Trump ally, said the levies on the EU were “wrong” but pledged to work with Washington for a deal.
Britain reportedly escaped relatively lightly after a diplomatic offensive that included Prime Minister Keir Starmer turning up to the White House with an invitation from King Charles III for a state visit.
But it remains committed to sealing a trade deal that could “mitigate” the 10 percent tariff it now faces, business minister Jonathan Reynolds said.
