WEBDESK: President Donald Trump has announced sweeping import tariffs, raising concerns over escalating global trade tensions. The new Trump tariffs impose a 10% duty on most imported goods, with significantly higher rates on products from China, Japan, and the European Union. Pakistan has been hit with a 29% trade tariff.
The Trump tariffs are intended to protect American industries and reduce the trade deficit. However, economic experts warn that the move could lead to increased prices for consumers and provoke retaliatory measures from affected countries.
Higher Trump tariffs for key trade partners
Under the latest policy, imports from the European Union will face a 20% tariff, Japan 24%, and China a steep 34% duty. The tariffs, set to take effect on April 5, have already sparked reactions from major economies.
China has urged the U.S. to reverse the decision, warning of countermeasures. Similarly, Japan and the European Union have expressed strong opposition, cautioning that these tariffs could trigger a global economic slowdown.
Economic impact and market reactions
Financial markets reacted negatively to the Trump tariffs, with Asian and European stock indices dropping sharply. In the U.S., stock futures also declined as investors worried about potential inflation and disrupted supply chains.
Japan’s Nikkei hit an eight-month low while US and European stock futures dropped sharply following weeks of volatile trading. US stocks have erased nearly $5 trillion of value since mid-February.
China, the world’s second-largest economy, faced with a fresh 34pc tariff on top of the 20pc Trump previously imposed, urged the United States to immediately cancel its latest levies and vowed countermeasures.
US Treasury chief Scott Bessent urged other nations not to retaliate, moves that could lead to dramatically higher prices for consumers on everything from bicycles to wine. “If you retaliate, that’s how we get escalation,” Bessent told CNN.
Experts predict that these tariffs could increase production costs and lead to higher consumer prices in the U.S. Businesses that rely on imported materials may struggle to maintain profitability, adding further strain to the economy.
Trump’s justification
Defending the decision, Trump stated, “For too long, unfair trade practices have hurt American workers. These tariffs will bring back manufacturing and create a fairer playing field.”
However, critics argue that the Trump tariffs could backfire, leading to inflation, job losses, and strained diplomatic relations. Many fear that retaliatory trade restrictions from other nations could lead to a full-scale trade war.
Global response and possible retaliation
China is considering counter-tariffs on American exports, particularly targeting the agriculture and technology sectors.
China on Thursday urged the United States to immediately cancel its latest tariffs and vowed countermeasures to safeguard its own interests, after President Donald Trump declared sweeping levies on all U.S. trading partners around the world.
“China firmly opposes this and will take countermeasures to safeguard its own rights and interests,” the ministry said, as the world’s largest economies look set to spiral deeper into a trade war that stands to upend global supply chains.
The European Union has also hinted at trade restrictions in response to the new tariffs.
“We will do everything we can to work towards an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players,” Italy’s prime minister, Giorgia Meloni, said.
As global tensions rise, analysts are urging diplomatic negotiations to prevent further economic damage. Some experts believe the Trump tariffs may push trade partners to seek alternative markets, potentially reducing reliance on American goods.
