Trump unveils sweeping global tariffs

U.S. President Donald Trump on Wednesday unveiled a raft of punishing tariffs targeting countries around the world including some of its closest trading partners, in a move that risks sparking a ruinous trade war. 

The U.S. president hailed a "declaration of economic independence" and once again promised a "golden age," while the Democratic opposition and many economists predict an immediate recessionary shock coupled with a surge in inflation.

"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said.

The White House's offensive is structured as follows: a baseline 10% tariff on all imports, with additional surcharges for certain countries deemed particularly hostile in trade matters.

These surcharges are calculated to account for so-called non-tariff barriers imposed by these countries on American products, such as sanitary regulations and environmental standards.

The bill is especially steep for China, with its products facing a 34% tariff, and the European Union, whose goods will be hit with a 20% duty. Rates have been set at 24% for Japan, 26% for India, 31% for Switzerland and 10% for Lebanon.

Donald Trump insisted this was a "kind" form of reciprocity.

‘This won’t be good’

"This won’t be good for those imposing tariffs or for those retaliating," European Central Bank chief Christine Lagarde warned on Wednesday.

Faced with an unpredictable negotiator, London isn’t rushing to respond. UK Finance Minister Rachel Reeves said Britain’s priority was securing "a good deal" with the U.S. to avoid the tariffs.

Meanwhile, the European Union has vowed to respond "before the end of April," according to the French government’s spokesperson.

Trump touts tariffs as a magic wand to bring back manufacturing, fix the trade deficit, and balance the budget.

Fixated on the protectionist policies of the late 19th and early 20th centuries, Trump — who campaigned on lowering the cost of living — has so far dismissed inflation concerns raised by economists.

Many experts, however, argue that his vision of a self-sufficient America is unrealistic in today's global economy, where supply chains stretch across multiple countries.

"The idea of a U.S. automaker using only American-made parts is pure fiction," says Dan Ives of Wedbush Securities.

Separately, at 04:01 GMT on Thursday, Washington plans to impose an additional 25% tariff on foreign-made cars and auto parts.

Since his return to the White House, Trump has already hiked tariffs on Chinese imports, as well as all steel and aluminum entering the U.S.

But he has also backtracked on some of his more dramatic trade threats. Foreign leaders are now hoping that once the dust settles from Wednesday’s shock announcement, negotiations will begin — just as they often did with the former real estate mogul, the man behind The Art of the Deal.