By AP News
Photos: YouTube Screenshots
President Donald Trump on Wednesday announced far-reaching new tariffs on nearly all U.S. trading partners that threaten to dismantle much of the architecture of the global economy and trigger broader trade wars. Read more.
Why this matters:
Trump said he was placing elevated tariff rates on dozens of nations that run trade surpluses with the United States, while imposing a 10% baseline tax on imports from all countries in response to what he called an economic emergency. The 10% rate will be collected starting Saturday, and the higher rates will be collected beginning April 9.
Trump was fulfilling a key campaign promise as he imposed what he called “reciprocal” tariffs on trade partners, acting without Congress under the 1977 International Emergency Powers Act. But his action Wednesday could jeopardize Trump’s voter mandate in last year’s election to combat inflation. Several Republican senators, particularly from farm and border states, have questioned the wisdom of the tariffs. U.S. stock market futures sold off sharply overnight in anticipation of the economy weakening, after having already dropped since the start of this year.
Longtime trading partners are preparing their own countermeasures.
