US President Donald Trump ignited a potentially ruinous global trade war Wednesday as he slapped 10 percent tariffs on imports from around the world and harsh extra levies on key trading partners including 29 percent tariffs on Pakistan.
Holding up a chart of the sweeping measures in the White House Rose Garden, Trump unveiled particularly stinging tariffs on major trade partners China and the European Union on what he called "Liberation Day."
"This is one of the most important days, in my opinion, in American history," said Trump. "It's our declaration of economic independence."
Pakistan faces 29% tariff while some other countries including Bangladesh and Sri Lanka have been slapped with higher rates. However, Trump was kind to both India and Afghanistan.
Speaking from the White House Rose Garden, Trump explained that the tariffs are calculated by factoring in existing tariff rates and non-monetary barriers, such as currency manipulation.
Canada and Mexico remain subject to a 25% tariff, with exemptions for goods under the United States-Mexico-Canada Agreement (USMCA).
“The tariffs will not be fully reciprocal. I could have done that, I guess. But it would have been tough for a lot of countries,” Trump said.
Following are the highlights of Trump’s remarks:
* “In many cases, the friend is worse than the foe in terms of trade,” Trump said.
* “We subsidize a lot of countries and keep them going and keep them in business,” Trump said about trade partners, specifically Mexico and Canada.
* “Why are we doing this? I mean, at what point do we say you got to work for yourselves.”
* “We are finally putting America first,” Trump said.
* “Trade deficits are no longer merely an economic problem. They are a national emergency,” Trump said.
* Trump held up a board showing the new rates charged on most countries. Rates ranged from 10% to 49% on the first board and up to 50% on later boards.
* With a few exceptions, based on the charts Trump read out, the tariff rate being imposed by the US on most countries was around half of what those countries charged. There were some exceptions in which the US charged the exact rates that those countries charged, according to the chart.
* “This is not full reciprocal, it is kind reciprocal,” Trump said.
South Asian countries facing tariffs
Pakistan – 29%
India – 26%
Bangladesh – 37%
Sri Lanka – 44%
Nepal – 10%
Bhutan – 10%
Maldives – 10%
Afghanistan – 10%
Global tariff rates
The highest tariffs are imposed on Lesotho (50%), Saint Pierre and Miquelon (50%), and Cambodia (49%), while European Union nations face a 20% tariff. Some of the other key rates include:
China – 34%
South Korea – 25%
Japan – 24%
European Union – 20%
United Kingdom – 10%
Brazil – 10%
Saudi Arabia – 10%
Turkey – 10%
The announcement triggered immediate anger, with China warning the tariffs could "endanger" global economic development, US ally Australia blasting them as "not the act of a friend," and threats of retaliation from around the world.
Stock markets looked set for major volatility Thursday, with Tokyo's Nikkei leading an Asian selloff, collapsing more than four percent. US futures plummeted and safe haven gold hit a new record as investors took fright.
Trump reserved some of the heaviest blows for what he called "nations that treat us badly."
That included an additional 34 percent on goods from superpower rival China -- bringing the new added tariff rate there to 54 percent.
Beijing swiftly vowed countermeasures and called for dialogue, warning the levies would "seriously harm" those involved. "There is no winner in a trade war, and there is no way out for protectionism," its commerce ministry said.
The figure for the European Union was 20 percent, and 24 percent on Japan, whose trade minister called the tariffs "extremely regrettable."
For the rest, Trump said he would impose a "baseline" tariff of 10 percent, including another key ally, Britain.
The 78-year-old Republican brushed off fears of turmoil, insisting that the tariffs would restore the US economy to a lost "Golden Age." "For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said.
- 'Make America wealthy again' -
A hand-picked audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump promised tariffs would "make America wealthy again."
Sweeping auto tariffs of 25 percent that Trump announced last week were due to take effect at 12:01 am (0401 GMT) Thursday.
Trump labelled Wednesday's tariffs "reciprocal" but many experts say his administration's estimates for levies placed on US imports by other countries are wildly exaggerated.
The US president had telegraphed the move for weeks, sparking fears of a recession at home as costs are passed on to US consumers, and a damaging trade war abroad.
US Treasury Secretary Scott Bessent warned against countermeasures, saying on Fox News: "If you retaliate, there will be escalation."
Some of the worst hit trading partners were in Asia, including 49 percent for Cambodia, 46 percent for Vietnam and 44 percent for military-ruled Myanmar, recently hit by a devastating earthquake.
Russia was not affected because it is already facing sanctions over the Ukraine war "which preclude any meaningful trade," a White House official said.
Certain goods like copper, pharmaceuticals, semiconductors, lumber and gold will not be subject to the tariffs, according to the White House.
They will also reinforce fears that Trump is backing further away from US allies towards a new order based on his vision of American supremacy.
- 'Fight' -
Australian Prime Minister Anthony Albanese on Thursday said the tariffs were "totally unwarranted."
Italian Prime Minister Giorgia Meloni, a close Trump ally, said the levies on the EU were "wrong" but pledged to seek a deal.
Britain escaped relatively lightly after a diplomatic offensive, but said it still wanted to "mitigate" the tariffs.
Canada and Mexico are not affected by the new levies as Trump has already punished them for what he says is their failure to stymie drug trafficking and illegal immigration.
Canadian Prime Minister Mark Carney vowed to "fight" the existing levies.
Trump's announcement is the culmination of a long love affair with tariffs, which he has seen for decades as a cure-all for America's trade imbalances and economic ills.
Following is the full list of countries hit by Trump tariff:
Lesotho: 50 percent
Saint Pierre and Miquelon: 50 percent
Cambodia: 49 percent
Laos: 48 percent
Madagascar: 47 percent
Vietnam: 46 percent tariff
Myanmar: 44 percent
Sri Lanka: 44 percent
Falkland Islands: 41 percent
Syria: 41 percent
Mauritius: 40 percent
Iraq: 39 percent
Guyana: 38 percent
Botswana: 37 percent
Bangladesh: 37 percent
Réunion: 37 percent
Serbia: 37 percent
Liechtenstein: 37 percent
Thailand: 36 percent tariff
Bosnia and Herzegovina: 35 percent
China: 34 percent tariff
North Macedonia: 33 percent
Fiji: 32 percent
Taiwan: 32 percent tariff
Indonesia: 32 percent
Angola: 32 percent
Switzerland: 31 percent
Moldova: 31 percent
Libya: 31 percent
Algeria: 30 percent
Nauru: 30 percent
Norfolk Island: 29 percent
Pakistan: 29 percent
Tunisia: 28 percent
Kazakhstan: 27 percent
India: 26 percent tariff
South Korea: 25 percent tariff
Brunei: 24 percent
Japan: 24 percent tariff
Malaysia: 24 percent
Vanuatu: 22 percent
Ivory Coast: 21 percent
Namibia: 21 percent
European Union: 20 percent tariff
Jordan: 20 percent
Zimbabwe: 18 percent
Nicaragua: 18 percent
Israel: 17 percent
Philippines: 17 percent
Zambia: 17 percent
Malawi: 17 percent
Mozambique: 16 percent
Norway: 15 percent
Venezuela: 15 percent
Nigeria: 14 percent
Chad: 13 percent
Equatorial Guinea: 13 percent
Democratic Republic of the Congo: 11 percent
Cameroon: 11 percent
United Kingdom: 10 percent
South Africa: 10 percent
Brazil: 10 percent
Singapore: 10 percent
Chile: 10 percent
Australia: 10 percent
Turkey: 10 percent
Colombia: 10 percent
Peru: 10 percent
Costa Rica: 10 percent
Dominican Republic: 10 percent
United Arab Emirates: 10 percent
New Zealand: 10 percent
Argentina: 10 percent
Ecuador: 10 percent
Guatemala: 10 percent
Honduras: 10 percent
Egypt: 10 percent
Saudi Arabia: 10 percent
Ukraine: 10 percent
Bahrain: 10 percent
Qatar: 10 percent
El Salvador: 10 percent
Trinidad and Tobago: 10 percent
Morocco: 10 percent
Uruguay: 10 percent
Bahamas: 10 percent
Iceland: 10 percent
Kenya: 10 percent
Haiti: 10 percent
Bolivia: 10 percent
Panama: 10 percent
Ethiopia: 10 percent
Ghana: 10 percent
Jamaica: 10 percent
Paraguay: 10 percent
Lebanon: 10 percent
Tanzania: 10 percent
Georgia: 10 percent
Senegal: 10 percent
Azerbaijan: 10 percent
Uganda: 10 percent
Albania: 10 percent
Armenia: 10 percent
Nepal: 10 percent
Sint Maarten: 10 percent
Gabon: 10 percent
Kuwait: 10 percent
Togo: 10 percent
Suriname: 10 percent
Belize: 10 percent
Papua New Guinea: 10 percent
Liberia: 10 percent
British Virgin Islands: 10 percent
Afghanistan: 10 percent
Benin: 10 percent
Barbados: 10 percent
Monaco: 10 percent
Uzbekistan: 10 percent
Republic of the Congo: 10 percent
Djibouti: 10 percent
French Polynesia: 10 percent
Cayman Islands: 10 percent
Kosovo: 10 percent
Curaçao: 10 percent
Rwanda: 10 percent
Sierra Leone: 10 percent
Mongolia: 10 percent
San Marino: 10 percent
Antigua and Barbuda: 10 percent
Bermuda: 10 percent
Eswatini: 10 percent
Marshal Islands: 10 percent
Saint Kitts and Nevis: 10 percent
Turkmenistan: 10 percent
Grenada: 10 percent
Sudan: 10 percent
Turks and Caicos Islands: 10 percent
Aruba: 10 percent
Montenegro: 10 percent
Saint Helena: 10 percent
Kyrgyzstan: 10 percent
Yemen: 10 percent
Saint Vincent and the Grenadines: 10 percent
Niger: 10 percent
Saint Lucia: 10 percent
Iran: 10 percent
Samoa: 10 percent
Guinea: 10 percent
Timor-Leste: 10 percent
Montserrat: 10 percent
Mali: 10 percent
Maldives: 10 percent
Tajikistan: 10 percent
Cabo Verde: 10 percent
Burundi: 10 percent
Guadeloupe: 10 percent
Bhutan: 10 percent
Martinique: 10 percent
Tonga: 10 percent
Mauritania: 10 percent
Dominica: 10 percent
Micronesia: 10 percent
Gambia: 10 percent
French Guiana: 10 percent
Christmas Island: 10 percent
Andorra: 10 percent
Central African Republic: 10 percent
Solomon Islands: 10 percent
Mayotte: 10 percent
Anguilla: 10 percent
Cocos Islands: 10 percent
Eritrea: 10 percent
Cook Islands: 10 percent
South Sudan: 10 percent
Comoros: 10 percent
Kiribati: 10 percent
São Tomé and Príncipe: 10 percent
Gibraltar: 10 percent
Tuvalu: 10 percent
British Indian Ocean Territory: 10 percent
Tokelau: 10 percent
Guinea-Bissau: 10 percent
Svalbard and Jan Mayen: 10 percent
Heard and McDonald Islands: 10 percent