Trump to charge high tariffs on 'worst offenders' globally

President Donald Trump has announced new import taxes on all goods entering the US. This is the biggest change in international trade since World War Two.

His plan includes a baseline tariff of 10% on all imports. This aligns with his proposal from last year's campaign.

About 60 trade partners, labeled as "worst offenders," will face higher rates. These include the European Union and China. Trump claims this is payback for unfair trade practices.

Analysts warn that this trade war could raise prices for Americans. It may also slow US economic growth and push some countries into recession.

During his announcement at the White House, Trump said these measures are necessary. He believes other countries have taken advantage of the US with high tariffs and barriers.

Declaring a national emergency, he stated that the US has been "looted" for decades. He called it a declaration of economic independence in front of US flags.

The White House plans to start charging the 10% tariffs on April 5. Higher duties for certain nations will begin on April 9.

Trump emphasized that they are standing up for American workers. He called it "one of the most important days in American history."

Many analysts were shocked by his decision. Ken Rogoff, former chief economist at the IMF, said it was like dropping a nuclear bomb on global trade.

Canada and Mexico will not be affected by these tariffs for now. Tariffs are taxes imposed on imports to boost manufacturing and prosperity in the US.

The Congressional Budget Office estimates these import taxes could raise $2.2 trillion by 2034. Trump had previewed this announcement after raising tariffs on China, foreign cars, steel, and aluminum previously.

New tariffs will affect allies like the UK with a 10% rate and the EU with a 20% rate. A new 34% tariff on Chinese goods adds to an existing 20%, totaling at least 54%.

Tariff rates will be set at 24% for Japan and 26% for India. Countries like Vietnam and Cambodia will face even higher duties of 46% and 49%.

Smaller nations like Lesotho will see products hit with a staggering 50% tariff.

Treasury Secretary Scott Bessent advised other countries against retaliation. He warned that retaliation could lead to escalation in tensions.

These duties could impact trillions of dollars in trade, likely raising prices in the US on various items such as clothing, wine, bicycles, toys, and more.

Olu Sonola from Fitch Ratings noted that these measures would bring US tariff rates back to levels seen in 1910. He predicted many countries might enter recession due to these changes.

The stock market was closed when Trump made his announcement dubbed "Liberation Day." However, shares in Asia-Pacific opened lower following his speech.

Japan's Nikkei index dropped by about 4%. Australia's ASX fell around 2%.

Wedbush Securities analyst Dan Ives described these tariffs as worse than expected but believed negotiations might follow.

Trump views his measures as "reciprocal," aimed at countering other countries' policies causing trade imbalances.

He also plans to end tax-free treatment for small packages from China starting May, affecting Amazon rivals like Shein and Temu.

Additionally, he confirmed a previously announced plan for a 25% tax on all foreign-made cars starting midnight today.

Specific items exempt from Wednesday's action may still face separate tariffs later.