US President Donald Trump’s widest-ranging tariffs to date took effect on Saturday, in a move which could trigger retaliation and escalating trade tensions that could upset the global economy.
A 10 per cent “baseline” tariff came into place past midnight, hitting most US imports except goods from Mexico and Canada, as Trump invoked emergency economic powers to address perceived problems with the country’s trade deficits.
The trade gaps, said the White House, were driven by an “absence of reciprocity” in relationships and other policies like “exorbitant value-added taxes.”
Come April 9, around 60 trading partners – including the European Union, Japan and China – are set to face even higher rates tailored to each economy.
Already, Trump’s sharp 34-percent tariff on Chinese goods, set to kick in next week, triggered Beijing’s announcement of its own 34-percent tariff on US products from April 10.
Beijing also said it would sue the United States at the World Trade Organization and restrict export of rare earth elements used in high-end medical and electronics technology.
