On Wednesday, United States President Donald Trump imposed sweeping reciprocal tariffs on the US’s trading partners.The day was termed “Liberation Day” by Trump, who signed an executive order imposing a flat 10 percent tariff on almost all nations and then additional tariffs on those countries that the US accuses of charging higher levies on American goods.
The levies sent shock waves through global markets and prompted criticism from world leaders. China and the European Union have already responded with retaliatory measures, signalling the risk of a global trade war.
China’s Ministry of Commerce called on Washington to cancel the tariffs. “There is no winner in a trade war, and there is no way out for protectionism,” the ministry said in a statement.
The 10 percent flat tariffs come into force on April 5, while the other tariffs will come into effect on April 9.
What are the new tariffs announced?
Trump has targeted roughly 60 countries with customised reciprocal tariffs. These are countries that have been singled out as ones that charge higher levies on US goods. The steeper rates apply to both major US trading partners and smaller economies – and allies and rivals alike. Advertisement
China has been hit with a 54 percent tariff, including 20 percent levies from earlier; Lesotho faces a 50 percent tariff; Cambodia 49 percent; and neighbouring Vietnam 46 percent.
“The hike in tariffs was more aggressive than expected,” Lynn Song, chief economist for Greater China at Dutch bank ING, told Al Jazeera.
“Many were expecting a range of 10-20 percent tariffs. This sort of aggressive move will probably risk some retaliation from the bigger players, though smaller countries could choose to try and negotiate for a lower rate.”
The EU has also been hit with a 20 percent tariff.
Baseline tariffs of 10 percent …
