Leaders around the globe have responded after Donald Trump unveiled his new tariffs, with economists predicting "dire" consequences.
In a dramatic “Liberation Day” declaration from the White House Rose Garden, the former President dropped many bombshells that will be felt across the world, per BBC News.
The move marks the most radical shift in American trade policy since 1947.
And Trump didn’t hold back. He accused allies and rivals alike of “looting, pillaging, raping and plundering” the U.S., before promising that his tariff blitz would bring jobs “roaring” back into the country.
Those who will really feel the impacts are those in Europe and Asia.
Markets tumbled across the board. By Thursday morning, Asian stocks had plunged, while the FTSE 100 in London dropped 26.32 points to close at 8,608.48 — down 0.3%. Housebuilders were among the day’s biggest losers.
Trump’s tariff chart, which he proudly held up during the announcement, looked like a brutal leaderboard.
Cambodia topped it with a punishing 49% tariff, followed closely by Vietnam at 46%. America’s supposed allies weren’t spared either: the EU got slapped with a 20% charge, Japan with 24%, and South Korea with 25%.
The European Commission was quick to hit back. President Ursula von der Leyen called it a “major blow to the world economy,” warning: “The consequences will be dire for millions of people around the globe,” per the Standard.
Speaking from Uzbekistan, she added that groceries, transport, and medicines would all get more expensive — and that “this is hurting, in particular, the most vulnerable citizens.”
Trump’s crackdown didn’t stop there. From midnight in Washington, all foreign cars imported into the U.S. are now hit with a 25% tariff.
Trump declared: “April 2, 2025 will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again.”
Trump’s dramatic reveal came after days of global speculation and mounting investor anxiety. By the time he stepped up to the podium at 9PM GMT, financial markets had already begun to wobble.
“Jobs and factories will come roaring back into our country,” Trump claimed during his speech. “We will break down foreign trade barriers... More production at home will mean stronger competition and lower prices for consumers. This will be the golden age for America.”
Economists aren’t so sure. Many warn the new tariffs could derail the global economy, spark a recession, and cost U.S. households thousands in extra living expenses, as the cost of these tariffs will likely be passed onto them.
Businesses have complained that Trump’s threats are making long-term planning almost impossible.
The key trading partners subject to these customised tariff rates include:
- European Union: 20%
- China: 54% (which includes earlier tariffs)
- Vietnam: 46%
- Thailand: 36%
- Japan: 24%
- Cambodia: 49%
- South Africa: 30%
- Taiwan: 32%
- United Kingdom: 10%