Trump Announces Sweeping Tariff Increases

In a move that marks a significant shift in U.S. trade policy, President Trump announced on Wednesday the imposition of a 10% baseline tariff on all imports, with even higher rates targeting the nation's major trading partners.

Impact on the U.S. and Global Economy

According to Fitch Ratings, this adjustment will elevate the effective U.S. tariff rate on all imports to 22%, a level not seen since around 1910. Olu Sonola, Fitch's head of U.S. economic research, highlighted the potential global repercussions, stating, "This is a game changer, not only for the US economy but for the global economy." He warned of possible recessions in many countries and the obsolescence of current economic forecasts if these tariffs remain in place long-term.

Implementation Timeline

The White House has outlined that the baseline 10% tariff will be effective from April 5, with the higher rates commencing on April 9.