Egypt Daily News – On Wednesday, U.S. President Donald Trump announced that he had signed a decree imposing “reciprocal tariffs” globally. While he described it as the beginning of America’s “golden age,” these tariffs could destabilize the global economy. The measures include imposing high tariffs of 34% on Chinese imports and 20% on those from the European Union.
He said at the start of his speech at the White House, “Trump announces heavy tariffs: 34% on China and 20% on the European Union”
In a speech delivered at the White House, Trump stated, “I will sign a historic executive order imposing reciprocal tariffs on countries around the world. This means: what they do to us, we do to them,” adding, “This, in my opinion, is one of the most important days in American history.”
The new tariffs include 34% on Chinese imports and 20% on goods from the European Union, two of the United States’ main trading partners.
The U.S. president also announced that he would impose a 31% tariff on imports from Switzerland, 50% higher than the one imposed on the European Union. Karen Keller-Sutter, President of Switzerland, stated on Wednesday that the Swiss Federal Council had been informed of the U.S. tariff decisions and would quickly determine the next steps.
Trump confirmed that a minimum tariff rate of 10% would be imposed on many countries, while others would face high tariffs, such as 24% on Japan and 26% on India.
The U.S. president also signed an executive order revoking the duty-free status granted to small parcels shipped from China, a mechanism that allowed Chinese e-commerce companies like Shein and Temu to expand in the U.S.
The White House stated that “the new U.S. tariffs will take effect on the 5th and 9th of this month.”
These decisions come as part of one of Trump’s main campaign promises, dubbed “the mother of all trade battles,” aimed at opening a “golden age” for the United States. However, these tariffs could lead to a collapse of the global economy.
Trump posted on his social media platform, Truth Social, on Wednesday, “This is the day of liberation in the United States,” referring to the project he promised to achieve during his campaign, though details remain unclear.
White House spokeswoman Caroline Levitt stated, “(Wednesday) marks the end of America’s pillaging,” emphasizing that the new tariff package would take effect “immediately” after Trump announces it. The New York Stock Exchange saw a decline as trading began on Wednesday, with the Dow Jones losing 0.8%, Nasdaq 1.43%, and the S&P 500 down 1.06%. Meanwhile, Asian markets fluctuated on Wednesday, awaiting more information on the tariffs.
The U.S. administration did not comment on the various scenarios circulating in the media.
The impact could be huge on the global economy. In 2024, the United States imported about $3.3 trillion worth of goods.
European Central Bank President Christine Lagarde said on Wednesday in remarks to an Irish radio station that what Trump is about to announce “will not be good for the global economy. It will not benefit those imposing tariffs or those responding with retaliatory tariffs. This will cause disruption in the world of trade as we know it.”
In Germany, government spokesman Steffen Hebestreit said, “The costs of a trade war are not borne by one side alone; it could become costly for both sides.” He added that Berlin “is ready and willing to negotiate with the United States at the European level” to avoid this.
“Very nice” The 78-year-old Republican president promised on Monday that he would be “very nice” to America’s trade partners, maintaining his unpredictable approach that is hard to predict.
U.S. partners have tried to prepare for the shock by adopting firm rhetoric while also showing readiness for dialogue and de-escalation efforts.
Canadian Prime Minister Mark Carney announced that his country would be “very cautious” in responding to “unjustified actions taken by the U.S. government.”
British Prime Minister Keir Starmer confirmed on Wednesday that the UK was preparing to adopt a “calm and pragmatic approach” to the new tariffs. Starmer told British MPs: “Our national interest will always be the driving force behind our decisions. Therefore, we are prepared for all possibilities and do not rule any of them out.”
Expected European Responses French government spokeswoman Sophie Brima said the European Union would respond “before the end of April” to the tariffs expected to be announced by Washington.
She said after a government meeting: “There will be two responses. The first will be taken in mid-April and will address the tariffs already imposed on steel and aluminum… Then, a detailed study will be made by sector, and the EU will announce a European decision before the end of April, in a consistent, unified, and strong manner.”
European Commission President Ursula von der Leyen said, “We do not necessarily want to take retaliatory action… but we have a strong plan if necessary.”
UK Trade Minister Jonathan Reynolds announced on Wednesday that the UK remains committed to reaching an agreement with the United States “to mitigate” the impact of the tariffs imposed by Trump and does not intend to take retaliatory action immediately.
Italian Prime Minister Giorgia Meloni expressed that the U.S. tariffs were wrong, hoping for “cooperation with Washington and Europe to avoid a trade war that would weaken the West.”
Australian Prime Minister Anthony Albanese said on Thursday that the tariffs imposed by Trump were “completely unjustified” and would alter his country’s relationship with the United States.
The German chemical industry, which considers the United States the largest importer of its products, called on the European Union on Wednesday to “remain calm” in responding to the new tariffs, stressing that “escalation will only exacerbate the damage.”
Some countries hope for more considerate treatment, like Vietnam, which reduced its tariffs on a range of goods in an attempt to appease Washington.
Other major exporting countries are seeking to form alliances that could give them more leverage against Washington.
In this context, Beijing, Tokyo, and Seoul have announced they will “accelerate” negotiations to reach a free trade agreement.
Since returning to the White House earlier this year, Trump has increased tariffs on Chinese products and a large portion of goods from neighboring Mexico and Canada, as well as on all steel and aluminum imports entering the U.S.
The Mexican government revised its growth forecast for 2025 on Tuesday, citing uncertainties related to “trade tensions” with its primary economic partner, the United States, with Mexico’s expected GDP now ranging from 1.5% to 2.3%, compared to 2% to 3% previously.
After the tariffs expected to be announced on Wednesday, the U.S. plans to impose an additional 25% tariff starting Thursday at 4:01 UTC on foreign-made cars and replacement parts.
