Trump announces sweeping tariffs on imports, raising fears of inflation and trade wars

03/04/2025 02:41 AST

US President Donald Trump on Wednesday announced sweeping new tariffs on nearly all U.S. trading partners, including a 34% tax on imports from China and 20% on goods from the European Union, in a bid to revitalize American manufacturing and raise revenue.

But the move risks sparking global trade wars and driving up prices for American consumers.

Speaking from the White House Rose Garden, Trump said the tariffs - imposed under emergency powers - were necessary to correct decades of unfair trade practices. "Our country has been looted, pillaged, raped, plundered," Trump said, arguing the U.S. has suffered from foreign tariffs and trade imbalances.

A baseline 10% import tax will apply to all countries, starting Saturday, with higher rates targeting nations with significant trade surpluses.

The White House said the higher tariffs would begin April 9. The administration estimates the tariffs will generate hundreds of billions in revenue annually.

The tariffs come despite concerns from economists and business groups that they could lead to higher prices for everyday items like cars, clothing, and housing, and slow economic growth. Many also fear retaliatory measures from key allies.

"We'll see how it all develops," said House Speaker Mike Johnson, R-La. "It may be rocky in the beginning. But I think that this will make sense for Americans and help all Americans."

Trump invoked the 1977 International Emergency Economic Powers Act to bypass Congress and enact the tariffs unilaterally-a move that has drawn backlash from Democrats and even some Republicans.

Rep. Suzan DelBene, D-Wash., called it "a massive tax increase on American families" and criticized Trump for breaking his promise to lower costs. "President Trump promised on the campaign trail that he would lower costs on day one. Now he says he doesn't care if prices go up," she said.

Trump also eliminated the current $800 exemption on China-origin imports and plans to apply the same rule to other countries once federal agencies ramp up staffing.

The administration has already imposed 25% tariffs on auto imports and various metals, and plans additional duties on drugs, lumber, copper, and semiconductors.

The EU and other major trading partners have pledged to respond. European Commission President Ursula von der Leyen said the EU does not want a trade war but will retaliate if needed. Canada, which is already facing U.S. steel and aluminum tariffs, has announced its own countermeasures.

Many in the business community say the lack of clarity around the new tariffs is damaging confidence and halting investment.

"There's going to be tariffs implemented. We just don't know at this point," said Ray Sparnaay, general manager of Canadian manufacturer JE Fixture & Tool. "Uncertainty has crushed our ability to make plans."

With Wednesday's announcement, U.S. tariffs are now approaching levels not seen since the 1930s, raising fears of a repeat of the global trade wars that deepened the Great Depression.

Saudi Gazette