The initial response from the market indicated that the extent of the tariffs announced on Wednesday caught investors in both the United States and abroad off guard.
The Tariffs Announcement of Trump
President Donald Trump stated that he postponed his so-called “Liberation Day” from yesterday to today to steer clear of April Fool’s Day, explaining that “nobody would believe what I said” on such a day associated with jokes. Consequently, rather than coinciding with a day known for pranks, Trump’s declaration regarding a new series of reciprocal tariffs arrives at a time when his administration is confronting a stark reality.
Global markets experienced significant turmoil on Thursday following President Trump’s declaration of a uniform 10 percent tariff on all U.S. trading partners, except Canada and Mexico. Additionally, he imposed even steeper tariffs on numerous other key trading partners of the United States.
Tariff Effect on Other Countries
Global markets faced considerable disruption on Thursday after President Trump announced a blanket 10 percent tariff on all U.S. trading partners, except Canada and Mexico. Furthermore, he introduced even higher tariffs on several other important trading partners of the United States.
- Trump’s previous 20% tariff increases severely impacted US-China trade; the measures taken today are far more aggressive.
- At the same time, the European Union will impose a tariff of 20%.
- India is encountering a 26% duty on its products being imported into the United States, in addition to substantial penalties imposed on other countries.
Other affected countries include South Korea, which will incur a 25% tariff, Japan at 24%, and Taiwan at 32%. The United Kingdom is set to experience a 10% tariff, whereas Switzerland and Vietnam, another significant trading partner, will face tariffs of 34% and 46%, respectively.
