US President Donald Trump confirmed that his new tariffs will apply to all countries, not just those with trade imbalances. He plans to introduce these import taxes on Wednesday, calling it “America’s Liberation Day.”
These new measures will come in addition to existing tariffs on steel, aluminum, and vehicles. Moreover, they will increase levies on all Chinese imports.
Markets React with Sharp Declines
As a result, Asian stock markets dropped on Monday due to concerns over the tariffs. Japan’s Nikkei 225 fell 4%, Hong Kong’s Hang Seng declined 1.6%, and South Korea’s Kospi lost 2.5%.
Speaking aboard Air Force One, Trump told reporters, “You’d start with all countries… Essentially all of the countries that we’re talking about.” However, he assured that the US would be “far more generous” and “kinder” than other nations had been toward America.
Trump’s Stance Remains Unclear
Previously, Trump suggested that he might soften the tariff plan. White House economic adviser Kevin Hassett also stated that the tariffs would focus on 10 to 15 countries with the largest trade deficits. However, he did not specify which ones.
Trump believes tariffs will protect the US economy and help negotiate better trade deals. Meanwhile, his advisers argue the plan will boost the economy, create jobs, and generate significant revenue.
Tariffs Could Bring in Billions
Trump’s top trade adviser, Pete Navarro, estimated that tariffs on car imports could raise $100 billion annually. In addition, he stated that all proposed tariffs could generate $600 billion per year, covering about 20% of total US imports.
A White House fact sheet claimed that a 10% tariff on every import could create nearly 3 million US jobs.
Trade War Fears Grow
As a result, many countries now face tough choices in trade negotiations with the US. The UK is among those affected. Meanwhile, the European Union and Canada have already announced plans for retaliatory measures.
TikTok Deal Nears Deadline
Trump also said a deal for TikTok’s sale would be finalized before Saturday’s deadline. Earlier this year, he set an April 5 deadline for TikTok’s Chinese owner, ByteDance, to sell the app to a non-Chinese buyer or face a ban.
The US government cited national security concerns for the ban. Ultimately, this policy follows a law passed under the Biden administration.
