US Imposes 10% Tariffs on Imports from Multiple Countries
US Customs officials began imposing the 10% tariffs on imports from multiple countries, as directed by President Donald Trump, on Saturday. The initial “base tariff” of 10 percent took effect at 12:01 a.m. ET (0401 GMT) at US ports, airports and customs warehouses, marking the start of Trump’s complete rejection of the post-World War II system of mutually agreed-upon tariffs.
Trump’s announcement of tariffs on Wednesday sent shockwaves through global stock markets, resulting in a record loss of $5 trillion in the S&P 500 Index (.SPX) by the end of the Friday trading session, a two-day record. Oil and commodity prices plummeted, while investors fled to the safety of government bonds due to recession fears.
Countries initially affected by the 10% tariffs include Australia, the United Kingdom, Brazil, Colombia, Argentina and Saudi Arabia, despite having a trade deficit with the US last year. White House officials stated that many countries would have larger deficits with the US if their policies were fairer.
Trump’s higher “reciprocal” tariffs of 11% to 50% are set to take effect on Wednesday at 12:01 a.m. ET. Imports from the European Union will be subject to a 20% tariff, with Chinese goods facing a 34% tariff, making Trump’s new duties on China a total of 54%.
Beijing responded on Saturday, stating, “The market has spoken” and rejecting Trump’s tariffs. China has taken a range of countermeasures, including additional tariffs of 34% on all US goods and export restrictions on some rare earth minerals.
“China was hit much harder than the US, not even close” Trump stated on social media on Saturday. “THIS IS A ECONOMIC REVOLUTION AND WE WILL WIN. It will not be easy, but the end result will be historic.”
Shortly after posting this comment, Trump was spotted reading an article from the New York Post at his Trump National Golf Club in Jupiter, Florida, which discussed China’s retaliatory measures against the US tariffs and the stock market plunge.
Elon Musk, a close advisor to Trump, expressed hope for a complete trade freedom between the United States and Europe, which he referred to as a “zero-tariff situation” during a political event in Italy via video on Saturday.
Canada and Mexico were exempt from Trump’s recent tariff increases, but are still subject to 25% tariffs on goods that do not meet the origin rules of a North American trade agreement.