Trump Imposes 10% Baseline Tariff on All U.S. Trading Partners, Sparking Global Trade Concerns

Former U.S. President Donald Trump has launched a blanket 10% initial tariff on all imported from America's trading partners, an action that marked an abrupt escalation of his "America First" trade policy. The across-the-board tariff is intended to spur manufacturing locally and rebalance trade deficits but raised concerns about global economic stability.

Key sectors like automotive, electronics, and agriculture would most likely experience significant cost increases, potentially equally impacting consumers as well as companies. China, the EU, and Canada are among the countries that have already criticized the measure and warned retaliatory actions, with the worry of a lasting trade war looming.

Trump vindicated the tariffs as a defense of American workers and businesses, referring to it as a "historic step toward economic independence." Markets were volatile in response, as investors calculated the probable effect of rising global tensions.

 

Source: Bloomberg, Reuters, CNBC