Trump tariffs escalate global trade war: 10% duty on imports, 29% on Pakistan
Trump tariffs escalate global trade war: 10% duty on imports, 29% on Pakistan
WASHINGTON: US President Donald Trump has intensified the Trump tariffs trade war, imposing a baseline 10% tariff on all imports, higher duties on key trading partners, and a steep 29% tariff on Pakistan—a response to Islamabad’s 58% levy on US goods.
Trump’s sweeping tariffs, announced at the White House Rose Garden, mark a dramatic escalation in global trade tensions, threatening inflation, economic growth, and decades of trade liberalization.
Global Market Turmoil
As Asian markets opened Thursday, Japan’s Nikkei plunged to an eight-month low, while US and European futures tumbled. Since mid-February, nearly $5 trillion has been wiped off US stocks.
China, facing a new 34% tariff (on top of existing 20% duties), vowed retaliation, urging Washington to reverse its decision. Meanwhile, US Treasury officials warned against retaliatory measures, fearing price surges on consumer goods.
Allies Targeted, Recession Fears Grow
Even close allies like the EU (20% tariff) and Japan (24%) were hit. Japan called the move “extremely regrettable,” while economists warned of a potential global recession.
The 10% base tariff takes effect April 5, with higher reciprocal rates kicking in April 9. Fitch Ratings noted the US import tax rate has skyrocketed to 22% under Trump—a level last seen in 1910.
Trump’s Justification & Backlash
Trump defended the Trump tariffs, claiming they protect US jobs: “For decades, our country has been looted by nations near and far.” However, economists warn of higher living costs and stalled growth.
Even Republicans rebuked the move—the Senate voted 51-48 to repeal Canadian tariffs, though House approval remains unlikely.
Closing Trade Loopholes
Trump also signed an order ending the “de minimis” rule, which allowed duty-free shipments under $800 from China—a move aimed at curbing fentanyl trafficking.
With additional tariffs on semiconductors, pharmaceuticals, and critical minerals looming, businesses brace for further disruptions in global trade.
China, the world’s second-largest economy, slammed the new 34% US tariff—imposed on top of existing 20% duties—demanding an immediate reversal and warning of countermeasures in the escalating US-China trade war.
Even close US allies faced harsh measures, with the European Union hit by a 20% tariff and Japan targeted at 24%. Tokyo called the move “extremely regrettable” and reserved the right to retaliate, signaling further strain on global trade relations.
