NEW DELHI: US President Donald Trump on Thursday imposed broad new tariffs, introducing a universal 10% tax on all imports, with additional levies ranging from 10% to 50% depending on trade imbalances.
The measures, enacted under the 1977 International Emergency Economic Powers Act, aim to counter trade deficits and strengthen domestic manufacturing. While Trump defends the move as essential for protecting American industries, critics warn of potential economic instability and a looming trade war.
Also read: Trump’s 26% 'discounted' tariff: Is Indian economy relatively insulated?
Countries facing the highest tariffsNations with significant trade surpluses with the US have been hit with the steepest tariffs. Some of the hardest-hit countries include:
Many of these countries, including Vietnam, Bangladesh, and Sri Lanka, are major exporters of textiles, footwear, and electronics to the US. The tariffs are expected to disrupt their industries, impacting global supply chains and potentially leading to price hikes for American consumers.
Countries facing the lowest tariffs
Some nations have been spared from the heaviest levies, facing only the baseline 10% tariff. These include:
The relatively lower tariffs suggest these countries are seen as fairer trading partners by the Trump administration. However, businesses in these nations remain concerned about the broader implications of escalating trade tensions.
Also read: 'Going to fight': How world leaders reacted to Trump's tariff move
Economic impact and global responseThe announcement of the tariffs has rattled global markets, with S&P 500 futures dropping nearly 2% and Asian and European stock indices experiencing similar declines. Analysts warn that these measures could push global trade towards its most protectionist era since the Great Depression, as affected nations prepare retaliatory actions.
Critics argue that tariffs, which function as a tax on imports, will raise costs for American consumers and businesses. Economists predict inflationary pressures, with some forecasting a 1% contraction in the US economy in the second quarter due to rising prices and disrupted supply chains.
In response, countries like Israel and Vietnam have lowered their own tariffs on US imports, possibly to avoid further punitive measures. Meanwhile, the European Union is reportedly considering imposing restrictions on US-based tech firms as a retaliatory step.
As Trump continues to push his 'America First' trade agenda, businesses and governments worldwide remain on high alert for further developments.
Full list of countries and how much reciprocal tariff Trump has imposed:(Lowest to highest tarrifs)
The measures, enacted under the 1977 International Emergency Economic Powers Act, aim to counter trade deficits and strengthen domestic manufacturing. While Trump defends the move as essential for protecting American industries, critics warn of potential economic instability and a looming trade war.
Also read: Trump’s 26% 'discounted' tariff: Is Indian economy relatively insulated?
Countries facing the highest tariffsNations with significant trade surpluses with the US have been hit with the steepest tariffs. Some of the hardest-hit countries include:
- Lesotho – 50%
- Cambodia – 49%
- Laos – 48%
- Madagascar – 47%
- Vietnam – 46%
- Sri Lanka, Myanmar (Burma) – 44% each
- Bangladesh, Serbia, Botswana – 37% each
Many of these countries, including Vietnam, Bangladesh, and Sri Lanka, are major exporters of textiles, footwear, and electronics to the US. The tariffs are expected to disrupt their industries, impacting global supply chains and potentially leading to price hikes for American consumers.
Countries facing the lowest tariffs
Some nations have been spared from the heaviest levies, facing only the baseline 10% tariff. These include:
- United Kingdom
- Australia
- Brazil
- Chile, Turkey, Argentina, Ecuador, Peru, New Zealand, UAE
- Canada and Mexico (exempt from new tariffs but still subject to existing levies on steel, aluminium, and cars)
The relatively lower tariffs suggest these countries are seen as fairer trading partners by the Trump administration. However, businesses in these nations remain concerned about the broader implications of escalating trade tensions.
Also read: 'Going to fight': How world leaders reacted to Trump's tariff move
Economic impact and global responseThe announcement of the tariffs has rattled global markets, with S&P 500 futures dropping nearly 2% and Asian and European stock indices experiencing similar declines. Analysts warn that these measures could push global trade towards its most protectionist era since the Great Depression, as affected nations prepare retaliatory actions.
Critics argue that tariffs, which function as a tax on imports, will raise costs for American consumers and businesses. Economists predict inflationary pressures, with some forecasting a 1% contraction in the US economy in the second quarter due to rising prices and disrupted supply chains.
In response, countries like Israel and Vietnam have lowered their own tariffs on US imports, possibly to avoid further punitive measures. Meanwhile, the European Union is reportedly considering imposing restrictions on US-based tech firms as a retaliatory step.
As Trump continues to push his 'America First' trade agenda, businesses and governments worldwide remain on high alert for further developments.
Full list of countries and how much reciprocal tariff Trump has imposed:(Lowest to highest tarrifs)
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