Mon, 31 Mar 2025

Mon, 31 Mar 2025 Shares slide in Asia as new Trump tariffs loom

The US president suggested that new tariffs he is set to announce this week will hit all countries.
US President Donald Trump has announced that new tariffs set to be unveiled on Wednesday will affect all countries, not just those with significant trade deficits with the US. This comes as he prepares to impose massive import taxes, which he has dubbed "Liberation Day". The measures will build upon existing tariffs on aluminum, steel, and vehicles, as well as increased levies on Chinese goods. Share markets in Asia have fallen amid concerns over the impact of the tariffs on the global economy. Trump stated that his administration would be "far more generous" to other countries than they have been to the US. The president's comments contradict previous suggestions from his advisors that the tariffs would focus on 10-15 countries with the worst trade deficits with the US. However, Trump believes the tariffs will protect the US economy and create jobs by raising trillions of dollars. Estimates suggest that the planned tariffs could raise $600bn annually, about a fifth of the value of total goods imports into the US. This has led to concerns over a potential trade war and recession in the US. In response, other countries including the EU and Canada are preparing retaliatory measures. Meanwhile, Trump has also announced a deal with TikTok's owner ByteDance to sell the app before a deadline on Saturday. The UK is currently in last-minute negotiations with the White House ahead of the tariffs being implemented. Businesses have expressed support for Trump's plans to address what they see as unfair trade practices. However, it remains to be seen whether the reciprocal tariffs will be an effective solution.
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