World Reels From Trump Tariff Shock

The penalties announced on Wednesday unleashed turbulence across world markets and drew condemnation from other leaders facing the end of an era of trade liberalisation that has shaped the global order for decades.

Trump said he would impose a 10 baseline tariff on all imports to the US and higher targeted duties on some of the countrys biggest trading partners, hammering goods from Italian coffee and Japanese whisky to sportswear made in Asia. Car maker Stellantis said it would temporarily lay off US workers and close plants in Canada and Mexico.

China vowed retaliation for Trumps 54 tariffs on imports from the worlds second largest economy, as did the EU, which faces a 20 duty. South Korea, Mexico, India and several other trading partners said they would hold off for now as they seek concessions before the targeted tariffs take effect on 9 April.

Washingtons allies and rivals alike warned of a devastating blow to global trade. The consequences will be dire for millions of people around the globe, EU chief Ursula von der Leyen said.

Trump says the reciprocal tariffs are a response to barriers put on US goods, though his list of targets includes uninhabited Antarctic islands. Some of the highest increases fell on impoverished countries in Africa.