Market Speak: ?Reciprocal tariffs? shake world markets; China and Vietnam face harshest rates

Donald Trump’s “Liberation Day” tariffs have thrown the global trade landscape into turmoil, with the U.S. imposing a baseline 10% tariff on all imports and additional levies on 60 countries. China faces a sharp 34% tariff, while the EU and Vietnam are hit with 20% and 46%, respectively. Other key nations like India (26%), Japan (24%), and South Korea (25%) are also targeted. Trump justified the move by calling it a long-overdue correction, declaring that the U.S. will no longer be “ripped off.”

Significantly, Canada and Mexico are exempt from these new duties, though their existing 25% tariffs remain in place. Critical industries like steel, aluminium, and automobiles, already taxed under previous policies, will not see further increases. However, Trump hinted at upcoming tariffs on copper, semiconductors, pharmaceuticals, and lumber, signaling that his aggressive stance on trade is far from over.

This sweeping policy shift could trigger retaliatory tariffs from affected nations, potentially disrupting global supply chains and increasing inflationary pressures. With international markets already on edge, the world now waits to see how trade partners will respond to Trump’s latest economic offensive.

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