Trump sparks global market turmoil with sweeping tariffs
Donald Trump announced new tariffs on countries worldwide on Wednesday. At the top of the list he revealed was China, which will face 34% tariffs. "Gonna be a wild day in markets," commented David Ingles, Bloomberg's chief market journalist.
Donald Trump, on what he called Liberation Day, Wednesday, 2nd April, signed documents implementing new tariffs on countries around the world. A base rate of 10% will apply to all goods imported to the USA, while a 25% rate will apply to cars. These will take effect on 5th April. Additionally, he revealed a list of countries that will face "proportional" retaliatory tariffs, which will be implemented from 9th April.
Donald Trump imposes tariffs on China and other countries
- For nations that treat us badly, we will calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating - he announced. He added that since the United States is "very courteous," the tariffs announced by the USA will represent half of the calculated amount.
At the top of the list of countries Trump revealed is China. They are set to be subject to a 34% tariff. Treasury Secretary Scott Bessent is rumoured to have confirmed that this amounts to a total of 54% tariff on China, combined with earlier 20% tariffs. Jeffrey Kleintop, Chief Global Investment Strategist at investment firm Charles Schwab, assessed this as a "negative surprise."
David Ingles from Bloomberg pointed out that Trump's decision immediately caused the dollar to yuan exchange rate to fluctuate. "Gonna be a wild day in markets Thursday," assessed Ingles.
Trump's decision affected not only the yuan exchange rate but also the euro to dollar. Experts assess that the tariffs could have dire consequences for the USA. Prof. Phillips P. O'Brien, a professor of strategic studies at the University of St Andrews stated that rhe United States will be cut off from many global supply chains as a result.
