Countries across the globe are experiencing a significant escalation of tariffs set by President Donald Trump of the United States. Trump has begun enforcing new “reciprocal” tariffs on goods from nearly 60 countries, with Chinese imports facing a cumulative 104% duty. Other affected countries include the European Union (20%), India (26%), Cambodia (49%), the United Kingdom (10%), and South Korea (25%).
Trump claims the tariffs will boost U.S. manufacturing, reduce trade deficits, and increase federal revenue. The rates are tailored to each country’s trade practices and barriers. Products such as steel, aluminum, and automobiles are excluded, as they are already subject to earlier industry-specific tariffs.
Economists warn the measures could trigger stagflation – a combination of high inflation and slow economic growth. Markets have reacted sharply: U.S. stocks fell for four consecutive days, the S&P 500 dropped below 5,000 for the first time in a year, and markets across Europe and Asia declined. In response, countries like South Korea and Taiwan have announced emergency financial support to cushion the blow.
While many nations have expressed willingness to negotiate, the U.S. has rejected deals that fail to address non-tariff issues such as currency manipulation and unfair labor practices. China, the most heavily targeted nation, has responded with retaliatory tariffs.
Trump maintains that the U.S. is earning billions daily from tariffs. However, experts warn that the long-term damage to the global economy and business confidence may be hard to reverse.