Thursday Briefing: Trump’s global tariffs
Good morning. We’re covering Trump’s new global tariffs and Israel’s expanding military offensive in Gaza. Plus, David Hockney’s blockbuster show.
Trump announced sweeping global tariffsPresident Trump unveiled yesterday his most expansive tariffs to date, hitting all of the U.S. trading partners except Canada and Mexico with a 10 percent tariffs. Europe and China will face much higher rates. At a ceremony at the White House, Trump called the announcement “our declaration of economic independence.” He added, “This is liberation day.” Trump said the U.S. would calculate a tariff rate for countries based on the levies they impose and “other forms of cheating.” These tariff rates are quite high. China will face a staggering 34 percent tariff, while the E.U. will get 20 percent. Japan will be 24 percent and India 26 percent. Trump has argued that tariffs will rebalance a global economy after years of countries “ripping off” the U.S. Governments across the world have been preparing to hit back, increasing the potential for a destabilizing trade war. We have live updates here. “Many people had been expecting the president to announce high tariffs today, but the numbers that he just revealed are stunning,” said my colleague Ana Swanson, who covers international trade. The tariffs, she added, “will likely force some manufacturing back into the United States, but also raise costs for American consumers and manufacturers and incite trade wars on many fronts.” Analysis: Trump’s advisers disagree on the goal of the sweeping tariffs. Is it to raise revenue or lower trade barriers?
Response: The Canadian and Chinese governments have already retaliated against Trump’s previous tariffs with taxes of their own. E.U. officials are weighing potentially targeting American tech and financial giants, a response that some refer to as a “bazooka.” Race to port: Companies rushed to import goods to the U.S. ahead of the tariffs. |
