U.S. President Donald Trump speaks assertively beneath the serene arches of the White House Rose Garden, a place typically reserved for softer, more harmonious deliberations. It’s April 2, 2025, as Trump announces his plan to impose a 10% tariff on most imported goods. This bold move introduces significantly higher levies on numerous global rivals and allies alike. It’s a maneuver that turns the gears of an already tense global trade war—one that sparks concerns about soaring inflation and potentially stunted economic growth.
The world responds as if a stone has been tossed into a calm pond. Markets are immediately agitated. The ripples extend far and wide. Consider this: as news reached Asia on Thursday, Japan’s Nikkei share index plummeted to an eight-month low. Meanwhile, U.S. and European stock futures were not immune, diving into the depths of uncertainty as investors sought refuge in bonds and gold.
Moreover, China, the globe’s second-largest economy, feels the pressure of a fresh 34% tariff—a hefty sum when added to the previously imposed 20% by Trump. However, Beijing remains undeterred, promising countermeasures against U.S. goods. A curious stance given U.S. Treasury Chief Scott Bessent’s ominous warnings of escalation, doesn’t it make you wonder about the potential outcome?
Close allies find no shelter in Trump’s ambit. Japan and the European Union face imposing tariffs of 24% and 20%, respectively. The base tariffs are slated to take effect on April 5, with the reciprocals following closely on April 9.
EU Chief Ursula von der Leyen did not hold back, labeling the tariffs a significant threat to the world economy. She warns of decisive countermeasures should discussions with Washington hit an impasse. “The consequences will be dire for millions around the globe,” she laments, echoing the fears of many.
Trump defends his decision as reciprocity for the duties and barriers impacting U.S. goods. “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike,” he passionately declared. Have you ever considered how deeply such words of anger could resonate on a global scale?
Unsurprisingly, the echo of concern reaches economists who caution that tariffs could slow the global economy, raising recession risks and costing American families dearly by elevating living expenses. Canada and Mexico, the U.S.’s most significant trading partners, already bear the brunt of 25% tariffs and remain untouched by the latest wave of levies.
Interestingly, even some within Trump’s own party express dismay over this aggressive trade strategy. In a swift response, the Senate narrowly voted 51-48 to halt Trump’s Canadian tariffs, with a handful of Republicans straying from party lines. Yet, success in the Republican-dominated U.S. House of Representatives appears unlikely.
In a candid conversation on Fox Business, Trump’s top economist, Stephen Miran, optimistically insists the tariffs will ultimately benefit the U.S. Although, he does not deny the likely initial hurdles. “Are there going to be short-term bumps as a result? Absolutely,” Miran, the chairman of Trump’s Council of Economic Advisors, admitted.
Interestingly, not all items are subject to these new tariffs. Certain goods such as copper, pharmaceuticals, semiconductors, lumber, gold, energy, and specific minerals, remain exempt according to a White House fact sheet.
Coinciding with his announcements, Trump signed an order targeting the “de minimis” trade loophole—previously allowing duty-free low-value packages. The closure aims to curb fentanyl flow through goods from China and Hong Kong, effective May 2. U.S. anti-narcotics officials cite Chinese chemical makers as the top suppliers for Mexican cartels. Isn’t it thought-provoking how a trade policy crosses the line into law enforcement?
Adding to his arsenal, Trump plans tariffs targeting semiconductors, pharmaceuticals, and perhaps critical minerals. Meanwhile, a separate set of auto import tariffs is set to take effect immediately. Previously, Trump imposed 25% duties on steel and aluminum, affecting nearly $150 billion worth of products downstream.
This climate of uncertainty that Trump has precipitated is palpable. Manufacturing stagnates, yet auto sales soar as consumers rush to beat impending price hikes.
U.S. Representative Gregory Meeks, a prominent Democrat, voiced his concerns. He plans legislation to revoke these tariffs, despite the slim likelihood of passing through the Republican Congress. “Trump just hit Americans with the largest regressive tax hike in modern history—massive tariffs on all imports. His reckless policies are not only crashing markets, they disproportionately hurt working families,” Meeks argues passionately. What do you imagine the future holds?
Additional insights were provided by Kanishka Singh and Steve Holland in Washington, Joe Cash in Beijing, and Benoit Van Overstraeten and Philip Blenkinsop in Brussels. Written by Andy Sullivan, Joseph Ax, and John Geddie; Editing by Alistair Bell, Diane Craft, and Lincoln Feast.
“Edited By Ali Musa, Axadle Times international–Monitoring.”
