Major new tariffs on countries around the globe have led several to impose their own heavy responses as the world teeters on the brink of financial meltdown.
This morning it was reported China now faces tariffs of 104% from the US – and it responded to Donald Trump by imposing its own 84% tariffs on US goods this afternoon. Last week, a 10% “baseline” trade tariff came into effect, as well as a raft of tough global tariffs ranging from 11% to 50% on all imports from around 60 countries Trump dubbed the “worst offenders” for plying unfair trade practices towards the US.
Since then Trump has imposed a tax of 47% on imports from Madagascar, 46% on Vietnam, 32% on Taiwan, 25% on South Korea, 24% on Japan and 20% on the European Union. Several are considering, or already have, implementing retaliatory tariffs.
Canada says it will put a 25% tariff on auto imports from the US that do not comply with the USMCA, the 2019 North American trade pact put in place during Trump’s first term.
The Canadian government is also putting in a framework to bolster auto production and investment in its country as well as providing a special exception on tariff countermeasures for residents of Campobello Island, New Brunswick.
Meanwhile, the Bank of England today issued a stark warning as Trump’s latest round of tariffs take effect. The Central Bank’s Financial Policy Committee (FPC) warned the global tariffs imposed on trade could severely rock the UK’s financial stability, which could have a wider negative impact on the UK economy .
In its latest report, the FCP said the “global risk environment” had “deteriorated” and that uncertainty had “intensified”. It continued: “The probability of adverse events, and the potential severity of their impact, have risen.”
Trump coined it “Liberation Day” when he announced the tariffs, with the move almost equivalent to throwing a grenade into the centre of some of the world’s biggest economies. On Tuesday, Trump accepted the fallout had been “somewhat explosive” but said that money had been “pouring in” from the new tariffs so far.
And this morning Trump claimed China “very badly” wants a deal in a post on his Truth Social account about South Korea. The president claimed: “I just had a great call with the Acting President of South Korea.
“We talked about their tremendous and unsustainable surplus, tariffs, shipbuilding, large scale purchase of US LNG, their joint venture in an Alaska Pipeline, and payment for the big time military protection we provide to South Korea. They began these military payments during my first term, Billions of Dollars, but Sleepy Joe Biden, for reasons unknown, terminated the deal.
““China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen! GOD BLESS THE USA.”
He also said in another post: “This is a GREAT time to move your COMPANY into the United States of America, like Apple, and so many others, in record numbers, are doing. ZERO TARIFFS, and almost immediate Electrical/Energy hook ups and approvals. No Environmental Delays. DON’T WAIT, DO IT NOW!”
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