In March 2018, President Donald Trump announced broad global tariffs on all U.S. trading partners. The announcement was made in a press conference from the White House Rose Garden on Wednesday. This is his own personal “liberation day” and the tariffs are scheduled to go into effect on April 5. These measures are intended to combat the kinds of practices that Trump believes have constituted “cheating”—unfair trade practices that have robbed the U.S. economy.
These new tariffs represent a 10% tariff on US imports from the United Kingdom. They even go so far as to call for a 20% tariff on all imports from the European Union and a whopper 34% tariff on imports from China. This aggressive, unilateral approach could trigger a broader, global trade war. International leaders and economists agree these provisions, as currently drafted, have the potential to send shockwaves through world markets.
The announcement has already sent shockwaves through global financial markets, triggering their most volatile day in 2016. In reaction to these tariffs, many analysts are cautioning that we might see retaliatory tariffs imposed by countries affected, sparking a chain reaction of tightening international trade relations.
In fact, Trump’s administration has painted these tariffs as a sort of savior to protect American interests. He proclaimed in exuberance, “This is one of the most glorious days in American history. MOST IMPORTANTLY, he called on the U.S. to reclaim its place and control over the world’s economic landscape.
Besides impacting our adversaries, the tariffs hurt American consumers and businesses. Back in August, Senator Tim Kaine rightly raised alarm over how these tariffs are hitting everyday families. He continued on to underscore, “Tariffs will hurt our families. Canada is not the enemy. He cautioned us against treating friends like enemies. He stressed the need to avoid imposing unnecessary costs which could raise the cost of living for American households and small businesses, especially during the current challenging economic climate.
Reciprocal tariffs among the affected countries will begin to be implemented on April 9. This would be just days after the first set of U.S. tariffs go into effect. This second phase of this sequence of events has left economists scratching their heads. They are concerned that a tit-for-tat trade war may seriously wound global economic growth and stability.
International leaders have overwhelmingly expressed outrage at the U.S. decision, urging dialogue over brinkmanship. Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization, acknowledged the fears expressed by countries in the WTO. That’s why they are concerned with the negative effects of these punitive tariffs. To which she said, “Many of you have written in with us about the US announcement of tariffs, asking that the Secretariat commission an independent economic analysis of what effects these tariffs will have on your trade, and what possible responses will look like.”
She noted that the Secretariat is here to answer your questions because we are a member-driven organization. This just goes to show the intense need for information and understanding as to what these policies start to mean.
While some Republican leaders have supported Trump’s stance on tariffs as a means to protect American jobs, others have voiced apprehension over potential repercussions. As Senator Marco Rubio reminded, we shouldn’t inflate or falsely portray claims about NATO participation and other multilateral partnerships. He wantonly claimed, “The United States is more engaged in NATO than we have ever been.” He then went on to padlock what he termed unnecessary trepidation over these connections.
These tariffs are emblematic of the dramatic shift in trade policy under Trump’s administration. The aim is to restructure U.S. relations with its largest commercial adversaries. Many policy experts contend that this strategy has already begun and, if further employed over the long run, can transform global trade dynamics for decades.