President Donald Trump has announced sweeping tariffs on imports from virtually all countries, sparking what experts are calling a historic global trade war. The tariffs include a minimum 10% fee on imports and are aimed at addressing the US’s trade deficits with numerous countries. Trump declared a US economic emergency and introduced higher tariffs for countries with significant trade imbalances with the US, targeting everyone from long-time allies to developing countries.
China, a major supplier to the US, has vowed to retaliate. US tariffs on Chinese imports could rise as high as 54% in some cases. Stock markets dropped sharply following the announcement, and gold prices soared as investors sought safer investments.
Outgoing German Chancellor Olaf Scholz criticized the tariffs as “fundamentally wrong” and warned of global and domestic economic damage. UK Prime Minister Keir Starmer pledged a measured response, acknowledging the economic impact but asserting Britain would act in its own interests. The French government condemned what it called Trump’s “imperialist posture” and warned of reciprocal measures.
Belgian Deputy Prime Minister Maxime Prévot decried the US’s unilateral move, predicting global trade disruption.
Trump declares economic emergency
Italian Prime Minister Giorgia Meloni cleared her schedule to deal with the economic fallout from the tariffs.
The tariffs have upended a century of American global trade policy and raised fears of widespread economic instability. Notably, Canada and Mexico were exempt from the higher tariffs but are still subject to a 25% tariff on non-free trade agreement goods. The tariffs appear to be calculated based on the trade deficit of each country with the US.
Nations exporting more to the US than they import are subjected to higher taxes. Among the more unusual tariff targets are territories with no economies or residents, such as Australia’s Heard Island and McDonald Islands, and Norway’s uninhabited Jan Mayen island. The National Retail Federation (NRF) warned that the tariffs would increase costs for American families.
The NRF stresses that tariffs are a tax on US importers, who will inevitably pass these costs to consumers. As the world braces for the fallout of President Trump’s aggressive trade policies, international leaders are evaluating their next steps. Market reactions indicate significant concern over economic stability, and businesses across America are preparing for increased costs and uncertainty.
