Tariffs are terrific, according to Trump – it’s his most favourite word.
Donald Trump’s ‘Liberation Day’ tariffs have sent shockwaves through global trade, marking a dramatic escalation in his tariff trade war strategy. The day of economic independence.
The President of the United States proudly showed off his tariff agenda neatly displayed on a chart akin to a ‘pub quiz scoreboard’.
In the White House Rose Garden on 2nd April 2025 Trump happily unleashed tariff turmoil on a global scale.
Announced with his usual characteristic bravado, these tariffs were ‘calculated’ to impose ‘reciprocal’ charges on imports from over 180 countries, including allies like the UK, the European Union and Canada.
It’s not fair
Trump claims this move will restore fairness in global trade and bolster American manufacturing, but critics warn of dire economic consequences.
The tariffs vary by country, with the UK facing a 10% levy on all exports to the U.S., while the EU faces a 20% tariff. China, already subject to existing tariffs, now faces a combined rate of 54%.
The automotive industry has been hit particularly hard, with a 25% tariff on foreign-made vehicles, threatening thousands of jobs around the world.
Trump’s announcement, delivered in the White House Rose Garden, was accompanied by a chart comparing tariffs imposed by other countries on U.S. goods.
He argued that these measures are necessary to counter years of unfair trade practices and to ‘make America wealthy again’.
However, economists and analysts have expressed concerns that these tariffs could plunge the global economy into a downturn, disrupt decades-old trade alliances, and spark retaliatory measures from affected nations.
Keep calm and carry on
The UK government, led by Prime Minister Keir Starmer, has reportedly vowed to take a calm and pragmatic approach, emphasizing the importance of securing a wider economic prosperity deal with the U.S.
Chancellor Rachel Reeves acknowledged that the UK would not be ‘out of the woods’ even if exemptions are secured, citing the broader impact of global tariffs.
As nations brace for the fallout, Trump’s Liberation Day tariffs may well redefine the landscape of international trade, for better or worse. The world watches as the ripple effects unfold.
Understandably stock markets reacted badly as futures tumbled. The Dow Jones was down 1000 points. Nikkei down 4%. S&P 500 down 3%.
UK and EU markets opened down too