Trump announces sweeping tariffs on imports, escalating global trade war

Update Trump announces sweeping tariffs on imports, escalating global trade war
US President Donald Trump gestures as he delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., US, April 2, 2025. (Reuters)
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Updated 03 April 2025
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Trump announces sweeping tariffs on imports, escalating global trade war

Trump announces sweeping tariffs on imports, escalating global trade war
  • Trump announces 10 percent baseline tariff
  • Higher reciprocal tariffs on many US trading partners

WASHINGTON: President Donald Trump on Wednesday unveiled a 10 percent minimum tariff on most goods imported to the United States, with much higher duties on products from dozens of countries, kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.
The sweeping duties, which drew bewildered condemnation from many long-standing US allies who found themselves tagged with unexpectedly high tariff rates, promise to erect new barriers around the world’s largest consumer economy, reversing decades of trade liberalization that have shaped the global order.
Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine.
US Treasury chief Scott Bessent urged other countries to not retaliate.
“Let’s see where this goes, because if you retaliate, that’s how we get escalation,” Bessent told CNN. “Doing anything rash would be unwise,” he added.
Bessent was asked how he expected stock markets to react to the tariffs to which he replied by saying: “I don’t know.”
Stocks slumped after the announcement. Japan’s Nikkei hit an eight-month low in early trading on Thursday, while US and European stock futures dropped sharply following weeks of volatile trading driven by uncertainty over the escalating trade war.
US stocks have erased nearly $5 trillion of value since mid-February.
Chinese imports will be hit with a 34 percent tariff, on top of the 20 percent Trump previously imposed, bringing the total new levy to 54 percent. Close US allies were not spared, including the European Union, which faces a 20 percent tariff, and Japan, which is targeted for a 24 percent rate. The base rates go into effect on April 5 and the higher reciprocal rates on April 9.
The effective US import tax rate has shot to 22 percent under Trump from just 2.5 percent in 2024, according to the head of US research at Fitch Ratings.
“That rate was last seen around 1910,” Olu Sonola said in a statement. “This is a game changer, not only for the US economy but for the global economy. Many countries will likely end up in a recession. You can throw most forecasts out the door if this tariff rate stays on for an extended period of time.”
The “reciprocal” tariffs, Trump said, were a response to duties and other non-tariff barriers put on US goods. He argued that the new levies will boost manufacturing jobs at home.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said at an event in the White House Rose Garden.
Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars.
Canada and Mexico, the two largest US trading partners, already face 25 percent tariffs on many goods and will not face additional levies from Wednesday’s announcement.
Even some fellow Republicans have expressed concern about Trump’s aggressive trade policy.
Within hours of Wednesday’s announcement, the Senate voted 51-48 to approve legislation that would terminate Trump’s Canadian tariffs, with a handful of Republicans breaking with the president. Passage in the Republican-controlled US House of Representatives, however, was seen as unlikely.
Trump’s top economist, Stephen Miran, told Fox Business on Wednesday the tariffs would work out well for the US in the long run, even if they cause some initial disruption.
“Are there going to be short-term bumps as a result? Absolutely,” Miran, the chairman of Trump’s Council of Economic Advisers, told the network’s “Kudlow” program.

 

Ending ‘de minimis’
The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and “certain minerals that are not available in the United States,” according to a White House fact sheet.
Following his remarks, Trump also signed an order to close a trade loophole used to ship low-value packages — those valued at $800 or less — duty-free from China, known as “de minimiz.” The order covers goods from China and Hong Kong and will take effect on May 2, according to the White House, which said the move was intended to curb the flow of fentanyl into the US
Chinese chemical makers are the top suppliers of raw materials purchased by Mexico’s cartels to produce the deadly drug, US anti-narcotics officials say. A Reuters investigation last year showed how traffickers often route these chemicals through the United States by exploiting the de minimiz rule. China has repeatedly denied culpability.
Trump is also planning other tariffs targeting semiconductors, pharmaceuticals, and potentially critical minerals, the official said.
Trump’s barrage of penalties has rattled financial markets and businesses that have relied on trading arrangements that have been in place since the middle of last century.
Earlier in the day, the administration said a separate set of tariffs on auto imports that Trump announced last week will take effect starting on Thursday.
Trump previously imposed 25 percent duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products.
Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.
European leaders reacted with dismay, saying a trade war would hurt consumers and benefit neither side.
“We will do everything we can to work toward an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players,” Italy’s prime minister, Giorgia Meloni, said.
US Representative Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, said he would introduce legislation to end the tariffs. Such a bill has little chance of passing the Republican-controlled Congress, however.
“Trump just hit Americans with the largest regressive tax hike in modern history — massive tariffs on all imports. His reckless policies are not only crashing markets, they will disproportionately hurt working families,” Meeks said.

 


India’s leader Modi touted all was well in Kashmir. A massacre of tourists shattered that claim

India’s leader Modi touted all was well in Kashmir. A massacre of tourists shattered that claim
Updated 15 sec ago
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India’s leader Modi touted all was well in Kashmir. A massacre of tourists shattered that claim

India’s leader Modi touted all was well in Kashmir. A massacre of tourists shattered that claim
  • The attack outraged people in Kashmir and India, where it led to calls of swift action against Pakistan

SRINAGAR, India: Hundreds of Indian tourists, families and honeymooners, drawn by the breathtaking Himalayan beauty, were enjoying a picture-perfect meadow in Kashmir. They didn’t know gunmen in army fatigues were lurking in the woods.
When the attackers got their chance, they shot mostly Indian Hindu men, many of them at close-range, leaving behind bodies strewn across the Baisaran meadow and survivors screaming for help.
The gunmen quickly vanished into thick forests. By the time Indian authorities arrived, 26 people were dead and 17 others were wounded.
India has described the April 22 massacre as a terror attack and blamed Pakistan for backing it, an accusation denied by Islamabad. India swiftly announced diplomatic actions against its archrival Pakistan, which responded with its own tit-for-tat measures.
The assailants are still on the run, as calls in India for military action against Pakistan are growing.
World leaders have been scrambling to de-escalate the tensions between two nuclear-armed neighbors, which have historically relied on third countries for conflict management.
But the massacre has also touched a raw nerve.
Early on Wednesday, India fired missiles that struck at least three locations inside Pakistani-controlled territory, according to Pakistani security officials who spoke on condition of anonymity because they were not authorized to talk to the media. India said it was striking infrastructure used by militants.
India admits security lapse
Indian Prime Minister Narendra Modi’s administration has governed Kashmir with an iron fist in recent years, claiming militancy in the region was in check and a tourism influx was a sign of normalcy returning.
Those claims now lie shattered.
Security experts and former intelligence and senior military officers who have served in the region say Modi’s government — riding on a nationalistic fervor over Kashmir to please its supporters — missed warning signs.
The government acknowledged that in a rare admission.
Two days after the attack, Kiren Rijiju, India’s parliamentary affairs minister, said that a crucial all-party meeting discussed “where the lapses occurred.”
“We totally missed ... the intentions of our hostile neighbor,” said Avinash Mohananey, a former Indian intelligence officer who has operated in Kashmir and Pakistan.
The meadow, near the resort town of Pahalgam, can be reached by trekking or pony rides, and visitors cross at least three security camps and a police station to reach there. According to Indian media, there was no security presence for more than 1,000 tourists that day.
Pahalgam serves as a base for an annual Hindu pilgrimage that draws hundreds of thousands of people from across India. The area is ringed by thick woods that connect with forest ranges in the Jammu area, where Indian troops have faced attacks by rebels in recent years after fighting ebbed in the Kashmir Valley, the heart of an anti-India rebellion.
The massacre brought Modi’s administration almost back to where it started when a suicide car bombing in the region in 2019 prompted his government to strip Kashmir of its semi-autonomy and bring it under direct federal rule. Tensions have simmered ever since, but the region has also drawn millions of visitors amid a strange calm enforced by an intensified security crackdown.
“We probably started buying our own narrative that things were normal in Kashmir,” Mohananey said.
In the past, insurgents have carried out brazen attacks and targeted Hindu pilgrims, Indian Hindu as well as Muslim immigrant workers, and local Hindus and Sikhs. However, this time a large number of tourists were attacked, making it one of the worst massacres involving civilians in recent years.
The attack outraged people in Kashmir and India, where it led to calls of swift action against Pakistan.
Indian television news channels amplified these demands and panelists argued that India should invade Pakistan. Modi and his senior ministers vowed to hunt down the attackers and their backers.
Experts say much of the public pressure on the Indian government to act militarily against Pakistan falls within the pattern of long, simmering animosity between both countries.
“All the talk of military options against Pakistan mainly happens in echo chambers and feeds a nationalist narrative,” in India, New Delhi-based counterterrorism expert Ajai Sahni said.
“It doesn’t matter what will be done. We will be told it was done and was a success,” he said. “And it will be celebrated nonetheless.”
Modi’s optimism misplaced, experts say
Experts also say that the Modi government’s optimism was also largely misplaced and that its continuous boasting of rising tourism in the region was a fragile barometer of normalcy. Last year, Omar Abdullah, Kashmir’s top elected official, cautioned against such optimism.
“By this attack, Pakistan wants to convey that there is no normalcy in Kashmir and that tourism is no indicator for it. They want to internationalize the issue,” said D.S. Hooda, former military commander for northern India between 2014 to 2016.
Hooda said the “choice of targets and the manner in which the attack was carried out indicates that it was well-planned.”
“If there would have been a good security cover, maybe this incident would not have happened,” he said.
India sees Pakistan connection to the attack
Indian security experts believe the attack could be a retaliation for a passenger train hijacking in Pakistan in March by Baloch insurgents. Islamabad accused New Delhi of orchestrating the attack in which 25 people were killed. India denies it.
Mohananey said that Indian authorities should have taken the accusations seriously and beefed-up security in Kashmir, while arguing there was a striking similarity in both attacks since only men were targeted.
“It was unusual that women and children were spared” in both cases, Mohananey said.
Two senior police officers, who have years of counterinsurgency experience in Kashmir, said after the train attack in Pakistan that they were anticipating some kind of reaction in the region by militants.
The officers, who spoke on condition of anonymity because of the sensitivity of the matter, said that security officials perceived the threat of an imminent attack, and Modi’s inauguration of a strategic rail line in the region was canceled. A large-scale attack on tourists, however, wasn’t anticipated, because there was no such precedence, the officers said.
Hooda, who commanded what New Delhi called “surgical strikes” against militants in the Pakistan-controlled part of Kashmir in 2016, said that the attack has deepened thinking that it was time to tackle the Pakistani state, not just militants.
Such calculus could be a marked shift. In 2016 and 2019, India said that its army struck militant infrastructure inside Pakistan after two major militant attacks against its soldiers.
“After this attack,” Hooda said, India wants to stop Pakistan “from using terrorism as an instrument of state policy.”
“We need to tighten our security and plug lapses, but the fountainhead of terrorism needs to be tackled,” Hooda said. “The fountainhead is Pakistan.”


Trump says only 21 hostages held by Hamas in Gaza now believed to be alive

Trump says only 21 hostages held by Hamas in Gaza now believed to be alive
Updated 23 min 14 sec ago
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Trump says only 21 hostages held by Hamas in Gaza now believed to be alive

Trump says only 21 hostages held by Hamas in Gaza now believed to be alive

WASHINGTON: President Donald Trump said Tuesday that three hostages held by Hamas in Gaza have died, leaving only 21 believed to be still living.
“As of today, it’s 21, three have died,” Trump said of the hostages being held by Hamas, noting until recently it had been 24 people believed to be living. He did not elaborate on the identities of those now believed to be dead, nor how he had come to learn of their deaths. “There’s 21, plus a lot of dead bodies,” Trump said.
One American, Edan Alexander, had been among the 24 hostages believed to be alive, with the bodies of several other Americans also held by Hamas after its Oct. 7, 2023 assault on Israel.
The president’s comments came as Israel approved plans on Monday to seize the Gaza Strip and to stay in the Palestinian territory for an unspecified amount of time, in a bid to recover the hostages and try to fulfill its war aims of destroying Hamas. If implemented, the move would vastly expand Israel’s operations there and likely draw fierce international opposition.


Columbia University lays off nearly 180 after Trump pulled $400M over his antisemitism concerns

Columbia University lays off nearly 180 after Trump pulled $400M over his antisemitism concerns
Updated 42 min 41 sec ago
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Columbia University lays off nearly 180 after Trump pulled $400M over his antisemitism concerns

Columbia University lays off nearly 180 after Trump pulled $400M over his antisemitism concerns
  • Pro-Palestinian demonstrators set up an encampment and seized a campus building in April, leading to dozens of arrests and inspiring a wave of similar protests nationally

NEW YORK: Columbia University said Tuesday that it will be laying off nearly 180 staffers in response to President Donald Trump’s decision to cancel $400 million in funding over the Manhattan college’s handling of student protests against the war in Gaza.
Those receiving non-renewal or termination notices Tuesday represent about 20 percent of the employees funded in some manner by the terminated federal grants, the university said in a statement Tuesday.
“We have had to make deliberate, considered decisions about the allocation of our financial resources,” the university said. “Those decisions also impact our greatest resource, our people. We understand this news will be hard.”
Officials are working with the Trump administration in the hopes of getting the funding restored, they said, but the university will still pull back spending because of uncertainty and strain on its budget.
Officials said the university will be scaling back research, with some departments winding down activities and others maintaining some level of research while pursuing alternate funding.
In March, the Trump administration pulled the funding over what it described as the Ivy League school’s failure to squelch antisemitism on campus during the Israel-Hamas war that began in October 2023.
Within weeks, Columbia capitulated to a series of demands laid out by the Republican administration as a starting point for restoring the funding.
Among the requirements was overhauling the university’s student disciplinary process, banning campus protesters from wearing masks, barring demonstrations from academic buildings, adopting a new definition of antisemitism and putting the Middle Eastern studies program under the supervision of a vice provost who would have a say over curriculum and hiring.
After Columbia announced the changes, US Education Secretary Linda McMahon said the university was ” on the right track,” but declined to say when or if Columbia’s funding would be restored. Spokespersons for the federal education department didn’t immediately respond to an email seeking comment Tuesday.
Columbia was at the forefront of US campus protests over the war last spring. Pro-Palestinian demonstrators set up an encampment and seized a campus building in April, leading to dozens of arrests and inspiring a wave of similar protests nationally.
Trump, when he retook the White House in January, moved swiftly to cut federal money to colleges and universities he viewed as too tolerant of antisemitism.


Trump hopes India-Pakistan clashes end ‘very quickly’

Trump hopes India-Pakistan clashes end ‘very quickly’
Updated 47 min 29 sec ago
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Trump hopes India-Pakistan clashes end ‘very quickly’

Trump hopes India-Pakistan clashes end ‘very quickly’

WASHINGTON: US President Donald Trump said Tuesday he hoped clashes between nuclear-armed India and Pakistan end “very quickly,” after New Delhi’s forces launched strikes and Islamabad vowed retaliation.
“It’s a shame, we just heard about it,” Trump said at the White House, after the Indian government said it had hit “terrorist camps” on its western neighbor’s territory following a deadly attack on tourists in Indian-administered Kashmir.
“I guess people knew something was going to happen based on the past. They’ve been fighting for many, many decades and centuries, actually, if you really think about it,” he added.
India and Pakistan have fought three full-scale wars since gaining independence from the British in 1947. Both claim Kashmir in full but administer separate portions of the disputed region.
“I just hope it ends very quickly,” said Trump.
India had been widely expected to respond militarily since gunmen shot dead 26 people in Indian-administered Kashmir, mostly Hindus.
New Delhi has blamed militants that it has said were from Pakistan-based group Lashkar-e-Taiba, a UN-designated terrorist organization.
Pakistan’s army said the Indian strikes targeted three sites in Pakistan-administered Kashmir and two in Punjab province, the country’s most populous.
Islamabad said that three civilians, including a child, had been killed in Indian strikes.
The Indian strikes came just hours after the US State Department issued a fresh call for calm.
“We continue to urge Pakistan and India to work toward a responsible resolution that maintains long-term peace and regional stability in South Asia,” State Department spokeswoman Tammy Bruce told reporters.
Her statement came after Indian Prime Minister Narendra Modi warned of stopping water from flowing across borders following the Kashmir attack.


‘World cannot afford’ India-Pakistan confrontation: UN

‘World cannot afford’ India-Pakistan confrontation: UN
Updated 54 min 48 sec ago
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‘World cannot afford’ India-Pakistan confrontation: UN

‘World cannot afford’ India-Pakistan confrontation: UN

UNITED NATIONS: UN Secretary-General Antonio Guterres was “very concerned” about Indian military strikes on Pakistan, his spokesperson said on Tuesday, hours after India said it hit nine sites in Pakistani territory.
“The Secretary-General is very concerned about the Indian military operations across the Line of Control and international border. He calls for maximum military restraint from both countries. The world cannot afford a military confrontation between India and Pakistan,” said Stephane Dujarric, the spokesperson.