After a series of unilateral tariff measures, the US is set to introduce a reciprocal global system which President Donald Trump believes will boost American wealth but has left economists fearing will usher in a global recession – that could come back to US shores.
Holding a chart on the Oval Office lawn, the President went through each country, explaining why they had received higher tariffs or the baseline 10%, which will swing into effect on Saturday (5 April). Trump said they were “kind reciprocal tariffs”, with charges based on half of those imposed on the US, according to the country’s calculations.
Vietnam (46%) and China (34%) receive the highest rates but Thailand (36%), Taiwan and Indonesia (both 32%), India (26%), Japan (24%) and the EU (20%) will all see their trade heavily impacted. It should be stressed that the baseline is also factored in to existing agreements, so in China’s case, for example, that takes its overall tariff to nearly 50%.
The UK, Brazil, Singapore, Saudi Arabia, UAE, Argentina, Chile, El Salvador, Guatemala, Honduras, Australia and Egypt are all to get the baseline tariff of 10%.
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