Trump’s Tariff Shock: Global Trade War Fears Intensify

New York: Defying both allies and adversaries alike, US President Donald Trump has announced a retaliatory tariff policy. Speaking at the 'Make America Wealthy Again' event held in the White House Rose Garden, Trump declared this move as America’s 'Day of Liberation,' sparking fears of a global trade war.

Trump announced that India would face a 26 per cent tariff with a 'discount.' British goods would be taxed at 10 per cent, while European Union products would see a 20 per cent tariff. China faces a 34 per cent tariff, Japan 24 per cent, and foreign- manufactured vehicles will be taxed at 25 per cent, effective from midnight. Trump also strongly criticised key trade partners Canada and Mexico, calling their trade practices unfair and warning of consequences. He asserted that America is entering a "golden era" and that this is a time for 'growth.'

Trump claims that imposing reciprocal tariffs will help curb what he sees as unfair trade practices by other nations. However, economic experts warn that this move could lead to severe inflation worldwide and fuel a global trade war.

The announcement has alarmed nations across the world. Experts fear that retaliatory measures will not be limited to just 10–15 countries with significant trade deficits but could extend to all nations. The uncertainty caused by this sudden policy shift has shaken global markets, leading to speculation and instability. The White House had been extremely secretive about the decision until the very last moment, providing no prior indications, which fuelled speculation and volatility in the stock markets.

Even America’s closest allies have reacted with strong resentment to Trump’s tariff announcement. The European Union has issued a warning, stating that there will be serious repercussions in response to the decision.