On Wednesday, April 2 — the day Donald Trump promoted as “Liberation Day” — the U.S. president detailed his plans for steep new tariffs. And they ranged from 10 percent for many countries to much higher for others.
The next morning on MSNBC’s “Morning Joe,” investor Steve Rattner didn’t mince words when describing the tariffs’ likely effects. And he warned that it isn’t unrealistic to start using the “R-word” in relation to the U.S. economy — as in recession.
According to analysis from Fitch Ratings reported by Bloomberg News, the United States isn’t the only country facing a possible recession because of Trump’s tariffs.
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Olu Sonola, Fitch’s head economic research for the U.S., warned, “This is a game changer, not only for the U.S. economy but for the global economy. Many countries will likely end up in a recession…. You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time.”
Trump’s new tariffs include 20 percent for goods imported into the U.S. from European Union (EU) countries. And Trump is moving forward with 25 percent tariffs on goods from Canada and Mexico, both major trading partners for the U.S.
Bloomberg News’ Huileng Tan reports that Asia “is hit particularly hard” by Trump’s tariffs.
“The region’s largest economy, China, faces 54 percent levies, including 34 percent in reciprocal tariff announced on Wednesday and preexisting duties of 20 percent,” Tan explains. “U.S. allies Japan and South Korea face 24 percent and 25 percent in reciprocal tariffs, respectively. India faces 26 percent duties.”
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Tan adds, “Southeast Asian countries — many of which have become supply chain hubs for companies diversifying manufacturing activities from China — are some of the most impacted by the new U.S. tariffs. Vietnam, Thailand, Indonesia, and Malaysia face tariffs of 46 percent, 36 percent, 32 percent, and 24 percent, respectively.”
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Read Bloomberg News’ full article at this link (subscription required).
