Trump’s tariffs stoke global trade war as China, EU hit back

The move by the US President Donald Trump to slap a 10% tariff on most goods imported to the United States, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth.

The Wednesday's announcement immediately unleashed turbulence across world markets and drew condemnation from other leaders now facing the end of an era of trade liberalization that has shaped the global order for decades.

As Asia digested the news on Thursday, stock markets in Beijing and Tokyo, were said to have sunk to multi-month lows, with US and European stock futures also pointing to sharp losses as investors scrambled to the safety of bonds and gold.

Facing 54% tariffs on exports to the US, the world's No. 2 economy China vowed countermeasures, as did the European Union, Washington's friends and foes united in criticism of measures they fear will deal a devastating blow to global trade.

EU chief Ursula von der Leyen said in a statement that the 27-member bloc was preparing to hit back if talks with Washington failed

“The consequences will be dire for millions of people around the globe,” she said.

US Treasury Chief Scott Bessent earlier warned that any such retaliatory moves would only lead to escalation.

DAILY POST reports that among close US allies, the European Union was targeted with a 20% rate, Japan with 24%, South Korea with 25% and Taiwan with 32%.

According to a list posted by the White House on X, even some tiny territories and uninhabited islands in the Antarctic were hit by tariffs.

In the announcement, the base tariffs go into effect on April 5 and the higher reciprocal rates on April 9.

The president said the reciprocal tariffs were a response to duties and other non-tariff barriers put on US goods, arguing that the new levies will boost manufacturing jobs at home.

“For decades, our country has been looted, pillaged, raped and plundered by nations near and far,” Trump said.