U.S. President Donald Trump announced that the benchmark tax rate for all importers is 10%, while tariffs on dozens of trade surpluses are significantly higher. The move could undermine global trade, drive prices for U.S. consumers and engage in a retaliatory trade war with key U.S. allies.
Trump showed a chart outlining the new tariff rates while speaking at the White House Rose Garden:
34% of China
20% of the EU
South Korea 25%
Japan is 24%
32% are Taiwan
The president described the global trading system with a distinct mission (helped to be established after World War II), claiming that the United States had been “plundered, plundered, raped and plundered” by foreign countries. He declared that under the International Emergency Powers Act of 1977, a new emergency was justified to justify the new tariffs.
Trump has set these tariffs as a way to revitalize U.S. manufacturing and generates hundreds of billions of dollars in annual revenue, but critics warn that they may raise costs on essential goods such as cars, clothing and electronics, ultimately placing a burden on consumers.
The news comes after previous tariffs on automatic imports, expanded steel and aluminum tariffs, and 25% tariffs on state sanctions on oil imports from Venezuela. Trump also hinted about future tariffs on drugs, wood, copper and computer chips.
But the main trading partners are preparing to retaliate: Canada has imposed tariffs on Trump’s 25% of automobile imports.
The EU threatens new tariffs on US goods worth $28 billion, including Bourbon, which could result in 200% tariffs on European alcohol.
Italian Prime Minister Giorgia Meloni warned that the EU-U.S. trade war would have “major consequences” for both sides.
“Europe has not started this confrontation, but we will respond when necessary,” said Ursula von der Leyen, president of the European Commission.
Even in the United States, the tariff decision has attracted bipartisan criticism.
Democrats believe that tariffs increase taxes on American households. Representative Suzan Delbene (D-wash.) said: “Trump promised to lower costs, but now he is raising the price of everything.”
Republicans are divided. House Speaker Mike Johnson (R-la.) acknowledged that while the move may have been “rock at the beginning,” he believes it will ultimately benefit Americans.
Meanwhile, business leaders warn that tariff uncertainty is preventing investment and damaging supply chains. Ray Sparnaay, a Canadian manufacturing executive, described the situation as “cruel”, saying: “For months, we have been unable to plan for the future.”
As inflation remains a major issue, many economists believe Trump’s tariff strategy can slow growth, increase costs and harm global trade relations. Nevertheless, the government remains firm, insisting that the policy will force other countries to lower their own trade barriers.
