Branded as “Liberation Day” by Trump, the tariffs are intended to bolster US manufacturing and retaliate against what he claims are longstanding unfair trade practices by other nations. However, many economists warn that the move could destabilise the economy and strain long-standing global alliances.
US Treasury Secretary Scott Bessent urged US trading partners to refrain from retaliatory actions against the new set of retaliatory tariffs. In an interview with Bloomberg Television on Wednesday, Bessent said, “I wouldn’t try to retaliate. As long as you don’t retaliate, this is the highest possible number.”
Former Barack Obama advisor and Clinton administration Treasury Secretary Larry Summers has called Trump’s new tariffs the “most expensive and masochistic” rates pursued by the US in decades.
US stocks fell sharply after Trump announced 10% tariffs on global partners. Big Tech stocks and airline shares dropped significantly. The S&P 500 has shed over $4 trillion in market value since February due to tariff-related anxiety.
“If you look at the unfair trade practices – we have 50% (tariff) from the European Union on American dairy and a 700% tariff from Japan on American rice. You have a 100% tariff from India on American agricultural products and nearly 300% from Canada on American butter and cheese,” she said.