US President Donald Trump yesterday announced sweeping "reciprocal tariffs" on US trading partners, including a 32 percent tax on goods from Taiwan that is set to take effect on Wednesday.
At a Rose Garden event, Trump declared a 10 percent baseline tax on imports from all countries, with the White House saying it would take effect on Saturday.
Photo: Reuters
Countries with larger trade surpluses with the US would face higher duties beginning on Wednesday, including Taiwan (32 percent), China (34 percent), Japan (24 percent), South Korea (25 percent), Vietnam (46 percent) and Thailand (36 percent).
Canada and Mexico, the two largest US trading partners, already face 25 percent tariffs on many goods and would not face additional levies from yesterday's announcement.
The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and "certain minerals that are not available in the United States," according to a White House fact sheet.
Trump is also planning other tariffs targeting semiconductors, pharmaceuticals and potentially critical minerals, a White House official said.
The White House said the tariffs aim to address "the injustices of global trade, reshore manufacturing and drive economic growth for the American people," but economic experts have warned that the measures could spark a trade war, exacerbate inflation and disrupt international trade.
Hours after the announcement, the US Senate passed legislation that would terminate new tariffs on Canada.
The Senate voted 51-48 to approve the bill and send it to the House of Representatives, where it is likely to be shelved.
In a blow to Trump, four Senate Republicans teamed up with Democrats to advance the legislation.
The sweeping duties would erect new barriers around the world's largest consumer economy, reversing decades of trade liberalization that have shaped the global order.
Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine.
US stock futures dropped sharply after the announcement, following weeks of volatile trading as investors speculated about how the incoming tariffs might affect the global economy, inflation and corporate earnings.
US stocks have erased nearly US$5 trillion of value since February.
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