US President Donald Trump ignited a potentially ruinous global trade war Wednesday as he slapped 10-percent tariffs on imports from around the world and harsh extra levies on key trading partners.
Holding up a chart of the sweeping measures in the White House Rose Garden, Trump unveiled particularly stinging tariffs on major trade partners China and the European Union on what he called "Liberation Day."
"This is one of the most important days, in my opinion, in American history," said Trump. "It's our declaration of economic independence."
The announcement triggered immediate anger, with China warning the tariffs could "endanger" global economic development, US ally Australia blasting them as "not the act of a friend," and threats of retaliation from around the world.
Argentina, despite President Javier Milei’s strong relationship with the Republican leader, failed to escape: it too will face 10-percent tariffs on goods entering the United States.
The move will put the sustainability of sales at risk, ramping up the price of Argentine goods for US consumers.
Milei will hope to leverage his strategic alliance with the US president to receive an exemption.
The La Libertad Avanza leader has pitched heavily for a free-trade deal with the US and hopes his ties with Trump can seal the deal.
Heaviest blows
Trump reserved some of the heaviest blows for what he called "nations that treat us badly." That included an additional 34 percent on goods from superpower rival China – bringing the new added tariff rate there to 54 percent.
Beijing swiftly vowed countermeasures and called for dialogue, warning the levies would "seriously harm" those involved. "There is no winner in a trade war, and there is no way out for protectionism," its commerce ministry said.
The figure for the European Union was 20 percent. It was 24 percent on Japan, whose trade minister called the tariffs "extremely regrettable." For the rest, Trump said he would impose a "baseline" tariff of 10 percent, including another key ally, Britain.
Sweeping auto tariffs of 25 percent that Trump announced last week were due to take effect Thursday.
Trump previously imposed 25 percent charges on steel and aluminum imports too, which will impact Argentine producers.
He has ordered probes into imports of copper and lumber as well, which could lead to further duties.
The 78-year-old Republican brushed off fears of turmoil, insisting that the tariffs would restore a "Golden Age” for the US economy. "For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said.
A hand-picked audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump promised tariffs would "make America wealthy again."
Reciprocal?
Trump labelled Wednesday's tariffs "reciprocal" but many experts say his administration's estimates for levies placed on US imports by other countries are wildly exaggerated.
The US president had telegraphed the move for weeks, sparking fears of a recession at home as costs are passed on to US consumers, and a damaging trade war abroad.
US Treasury Secretary Scott Bessent warned against countermeasures, saying on Fox News: "If you retaliate, there will be escalation."
Some of the worst hit trading partners were in Asia, including 49 percent for Cambodia, 46 percent for Vietnam and 44 percent for military-ruled Myanmar, recently hit by a devastating earthquake.
Cuba, Belarus, North Korea, and Russia were not affected because it is already facing sanctions over the Ukraine war "which preclude any meaningful trade," a White House official said.
Certain goods like copper, pharmaceuticals, semiconductors, lumber and gold will not be subject to the tariffs, according to the White House.
They will also reinforce fears that Trump is backing further away from allies towards a new order based on his vision of US supremacy.
Regional view
Major US partners Canada and Mexico are not hit by the new tariffs. Trump earlier imposed 25 percent tariffs on imports from both countries, with a lower rate on Canadian energy, and they will continue to face these duties. Goods entering the world's biggest economy under the US-Mexico-Canada Agreement will still be exempted.
Most of the United States largest trading partners in South America – including Brazil, Chile, and Colombia – were given the 10-percent levy. However, tariffs of 18 percent will apply to goods from Nicaragua.
Reacting to the news, Brazil's Congress approved a so-called "Economic Reciprocity Law" allowing the Executive to respond to the 10-percent tariffs on exports from Latin America's biggest economy.
The law was approved unanimously by the House of Representatives after receiving the Senate's green light.
Brazil is the second-largest exporter of steel to the United States after Canada, shipping four million tonnes of the metal in 2024.
Colombian President Gustavo Petro said Trump had made a wrong move in imposing the sweeping tariffs.
"The US government now believes that by raising tariffs on its imports in general, it can increase its own production, wealth, and employment; in my opinion, this could be a big mistake," he said.
Massive Malvinas tariffs
The world's remotest corners couldn't hide from Trump's global tariffs – even the uninhabited Heard and McDonald Islands.
The Australian territory in the sub-Antarctic Indian Ocean was slapped with tariffs on all its exports, despite the icy archipelago having zero residents – other than many seals, penguins and other birds.
Another eye-catching inclusion in the tariffs list was the Malvinas (Falkland) Islands. The South Atlantic territory – famous for the 1982 war fought by Britain and Argentina – was walloped with tariffs of 41 percent on exports.
– TIMES/AFP
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