US President Donald Trump’s 10% tariff on imported goods took effect on Saturday, sparking fears of a global trade war that could upset the world economy. The initial “baseline” tariff applies to the US seaports, airports, and customs warehouses, affecting countries such as Australia, Britain, Colombia, Argentina, Egypt, and Saudi Arabia.
The tariffs are part of Trump’s rejection of the post-World War II system of mutually agreed tariff rates, citing “absence of reciprocity” in relationships and other policies like “exorbitant value-added taxes.” The US Trade Representative’s office claims that the tariffs will increase revenue for US industries but economists warn that they could dampen growth and fuel inflation.
The European Union is set to face a 20% tariff on its imports, while Chinese goods will be hit with a 34% tariff. Vietnam will also be affected, with a 46% tariff applied to certain products. Canada and Mexico are exempt from the duties due to their existing 25% tariff related to the US fentanyl crisis.
Global markets reacted negatively to the announcement, with stock prices plummeting across the world. The Dow Jones Industrial Average fell by over $1 trillion in value, wiping out nearly 5% of its total worth. Economists predict that the tariffs could lead to a recession in the US and fuel inflation worldwide.
Trump has defended his policies, saying they will never change, but experts warn that the trade tensions are likely to escalate as countries seek to negotiate lower rates. The US Trade Representative’s office has indicated that further investigations into certain industries like pharmaceuticals and semiconductors are planned, which could lead to additional tariffs in the future.
Source: https://www.aljazeera.com/news/2025/4/5/trumps-10-percent-tariff-takes-effect-raising-fears-of-global-trade-war