In brief
As President Trump prepares to announce new tariffs this week, he indicates that the measures will apply to all nations, escalating concerns about their effect on the global economy and market stability.
President Donald Trump is poised to unveil a sweeping set of tariffs this week that will impact all countries, rather than focusing solely on those with significant trade deficits with the United States. Declaring it America’s "Liberation Day," Trump’s announcement will add to the existing tariffs already imposed on aluminum, steel, and vehicles, alongside heightened levies on imports from China.In comments to reporters aboard Air Force One, Trump stated, "You'd start with all countries," implying that the impending tariffs will encompass essentially every nation involved in trade with the US. This statement comes despite earlier indications from the White House, suggesting a potential trimming of the tariffs and the consideration of imposing them at lower rates for certain countries.White House economic adviser Kevin Hassett noted on Fox Business that the tariffs would primarily target 10 to 15 nations suffering from substantial trade deficits with the US, although he refrained from specifying which nations might be involved. Trump has consistently framed tariffs as a critical means of shielding the US economy from unfair competition and a strategic tool for negotiating better trading terms.His advisors have expressed optimism about the economic benefits of the proposed tariffs, arguing that they could generate significant revenue and create millions of jobs domestically. Trade adviser Pete Navarro emphasized that a tax on car imports could raise approximately $100 billion out of a $240 billion trade total. In total, the tariffs might yield around $600 billion, roughly 20% of the value of all goods imported into the US.However, the looming tariffs have unsettled stock markets, raising fears of a trade war and recession within the US economy. Early trading on Monday morning reflected these worries, with Japan's Nikkei 225 index dropping over 3%, Australia’s ASX 200 down by 1.6%, and South Korea's Kospi falling around 2%.The situation places added pressure on countries negotiating trade agreements with the US, including the UK. Internationally, economic entities like the EU and Canada are reportedly preparing retaliatory measures against what they perceive as aggressive tariff policies.In addition to the tariff discussions, Trump has indicated that an agreement concerning the sale of the TikTok app by its Chinese owner, ByteDance, must be finalized by Saturday in accordance with national security regulations. This deadline, first set in January, is connected to a law enacted under the Biden administration outlining the necessary steps for compliance.
