The United States has begun enforcing a 10% tariff on imports, marking a significant shift in trade policy.
As of April 5, U.S. customs officials are collecting the new baseline tariff at seaports, airports, and customs warehouses nationwide. This move affects imports from numerous countries, including Australia, Britain, Colombia, Argentina, Egypt, and Saudi Arabia.
Kelly Ann Shaw, a former White House trade adviser, described the action as “the single biggest trade action of our lifetime.”
The policy has already impacted global markets, erasing $5 trillion in S&P 500 value over two days. China responded with matching tariffs and export restrictions on U.S. goods, escalating trade tensions.
Higher “reciprocal” tariffs, ranging from 11% to 50%, are set to take effect on April 9 for 57 major trading partners, including the European Union and China. The EU will face a 20% tariff, while Chinese goods will be hit with a 34% tariff, bringing the total levy on Chinese imports to 54%.
Despite exemptions for certain products like crude oil, pharmaceuticals, and semiconductors, further duties on these items are under review.
President Trump has characterized the tariff implementation as an “economic revolution.” However, critics and global officials warn that it could escalate into a full-scale trade war, with potential recessionary effects worldwide.
In response to the U.S. tariffs, China imposed 34% duties on American goods and restricted exports of rare earths, intensifying fears of a global recession. The Nasdaq entered a bear market, and the Dow fell into correction territory.
J.P. Morgan has increased the probability of a global recession to 60%, citing harmful U.S. trade policies and retaliatory measures by China.
As the situation develops, global leaders and economic analysts are closely monitoring the potential for further escalation and its impact on international trade and economic stability.
