President Donald Trump has announced that the new tariffs he plans to introduce this week will apply to all countries, not just those with the largest trade imbalances with the U.S. His remarks come ahead of the unveiling of a major set of import taxes on Wednesday, which he has referred to as America’s “Liberation Day.” These new measures will add to existing tariffs on aluminum, steel, vehicles, and all Chinese imports.
Asian stock markets reacted negatively on Monday, with investors concerned about the potential global economic impact. Speaking aboard Air Force One, Trump emphasized that the tariffs would affect “essentially all countries” but assured that the U.S. would be “far more generous” than its trading partners had been in return. His latest stance follows previous suggestions that he might scale back the tariff plans.
White House economic adviser Kevin Hassett previously indicated the focus would be on 10 to 15 countries with the worst trade deficits, though he did not specify which ones. Trump argues that tariffs protect the U.S. economy from unfair competition and serve as leverage for better trade deals. His advisers claim the tariffs could generate trillions of dollars and create jobs. Trade official Pete Navarro estimated that a tax on all car imports could generate $100 billion from a $240 billion market, and total planned tariffs could raise around $600 billion. A White House fact sheet last week suggested a 10% tariff on all imports could create nearly 3 million U.S. jobs.
Despite these projections, concerns about a trade war have unsettled global markets, with fears of a U.S. recession growing. On Monday, Japan’s Nikkei 225 fell nearly 4%, Hong Kong’s Hang Seng dropped 1.2%, and South Korea’s Kospi declined by 2.5%. The tariffs also increase pressure on countries negotiating trade deals with the U.S., including the UK. Meanwhile, the EU and Canada have already announced plans for retaliatory measures.
Separately, Trump stated that a deal for TikTok’s Chinese owner, ByteDance, to sell the app is expected before the Saturday deadline. The 5 April deadline was set in January, requiring TikTok to secure a non-Chinese buyer to avoid a U.S. ban over national security concerns, following a law passed under the Biden administration.
