WASHINGTON,- President Donald Trumpsaid on Wednesday that he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on dozens of other countries, including some of the United States’ biggest trading partners, deepening a trade war that he kicked off on his return to the White House.
The sweeping duties would erect new barriers around the world’s largest consumer economy, reversing decades of trade liberalization that have shaped the global order. Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine.
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U.S. stock futures sank after the announcement, following weeks of volatile trading as investors speculated about how the incoming tariffs might affect the global economy, inflation and corporate earnings. U.S. stocks have erased nearly $5 trillion of value since February.
“It’s our declaration of independence,” Trump said at an event in the White House Rose Garden.
Chinese imports will be hit with a 34% tariff, according to Trump, on top of the 20% levy that he previously imposed on that country. Close U.S. allies were not spared, including the European Union, which faces a 20% tariff.
A White House official, speaking on condition of anonymity, said the higher penalties will take effect on April 9 and will apply to about 60 countries in all. The baseline 10% tariff will take effect on Saturday, the official said.
The “reciprocal” tariffs, Trump said, were a response to duties and other non-tariff barriers put on U.S. goods.
“In many cases, the friend is worse than the foe in terms of trade,” Trump said.
Canada and Mexico, the two largest U.S. trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday’s announcement.
The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and “certain minerals that are not available in the United States,” according to a White House fact sheet.
