Trump tariffs take effect today, reshaping global trade

New 10% tariffs imposed by US President Donald Trump on a wide range of goods imported into the United States from most of the world took effect today, reshaping global trade.

These tariffs, which exclude certain commodities such as crude oil, natural gas, gold, copper, silver, palladium, construction timber, semiconductors, pharmaceuticals, and minerals not found in the US, are in addition to existing levies.

The new duties also do not apply to steel, aluminium, and imported cars, which have already been subjected to 25% tariffs.

The impact is set to intensify from April 9 for countries that export more goods to the US than they import. Tariffs on imports from China will reach 54%, from the EU 20%, from Vietnam 46%, and from Japan 24%.

According to an official document released by the US government on Friday, the new tariffs affect approximately 80 countries and regions, including the 27 member states of the European Union.

However, the Heard Island and McDonald Islands in the Antarctic region, which Trump had announced would be subject to tariffs despite being inhabited only by penguins, have been removed from the official list.

The United Nations Conference on Trade and Development (UNCTAD) expressed concern on Friday that some of the world’s poorest countries remain on the US tariff list. UNCTAD highlighted that least developed countries and small island developing states account for just 1.6% and 0.4% respectively of the US trade deficit.

On Wednesday, Donald Trump justified his decision to impose the additional tariffs on imported goods as a “national emergency” to reduce the US trade deficit. Economists suggest that the tariff barriers announced by the Republican president are as high as those imposed by the US in the 1930s, a period when global trade was less developed and countries were less reliant on international production.

Beijing has already responded by announcing the imposition of additional 34% tariffs on US imports from April 10, escalating the trade war. Reactions from other countries are also expected.

Meanwhile, financial markets are experiencing turmoil. The US stock market has lost $6 trillion in value over two days, while European and Asian markets have also seen sharp declines.

“My policies will never change,” Trump posted on Truth Social in all capital letters. “This is a great time to get rich, richer than ever before!!!” he also added in capitals.

Furthermore, Trump urged the Chairman of the Federal Reserve (FED), Jerome Powell, to lower interest rates, deeming it the “perfect” time due to progress made on some prices (oil, eggs) since his return to the White House in January.

However, minutes later, Powell painted a bleak picture of the US economic outlook following the new tariffs, predicting potentially higher inflation, slower growth, and increased unemployment.