When Donald Trump prepared to announce a mutual tariff swath, global markets were supported, with some Republican senators expressing their opposition to the strategies critics warned, triggering retaliation by major trading partners such as China, Canada and the European Union.
The US President on Monday said he was “very kind” when he announced more tariffs this week, and even earlier, Tuesday night.
The Republican billionaire promises a “liberation day” for the United States, claiming that mutual action is necessary as the world’s biggest economy has been “torn apart by all countries in the world.”
He was also able to announce more sector-specific collections.
Looking for details, he told reporters Monday:
However, he added: “We will be very kind.
Some Republican senators are considering signing their support for a resolution blocking Trump’s tariffs in Canada, CNN reported. Senator Susan Collins warned that tariffs in Canada are particularly harmful to Maine and that he intends to vote for a resolution aimed at blocking tariffs on Canadian goods.
Republican Sen. Tom Tillis also said he is considering supporting the resolution, adding:
Already, China, South Korea and Japan agreed on Sunday to strengthen their own free trade ahead of Trump’s expected tariff announcement.
But Trump said Monday he was not worried that his actions would push his allies to Beijing, adding that deals on Tiktok could also be linked to Chinese tariffs.
White House press chief Karoline Leavitt told reporters that Wednesday’s goal was to announce “country-based tariffs,” but Trump has pledged to impose separate sector-specific accusations.
Uncertainty is shaking the market, with major European and Asian indexes falling, while the Dow and the broader S&P 500 are profiting.
Tensions in the market escalated after Trump said on Sunday that his tariffs would include “all countries.”
The Wall Street Journal reported on Sunday that advisors considered imposing a global tariff of up to 20%, striking almost all US trading partners. Trump remains vague and says his tariffs are “far more generous” than what is already being collected on US products.
Trump’s lockdown on tariffs is incited by the fear of a US recession. Goldman Sachs analysts have increased the odds of a 12-month recession from 20% to 35%.
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This reflects “a statement that shows a decline in growth forecasts, a decline in confidence, and a willingness to tolerate economic pain when statements from White House officials are founded.” Goldman Sachs also lifted its underlying inflation forecast at the end of 2025.
China and Canada are putting an anti-load on US goods, but the EU has announced its own measures to launch in mid-April. Other measures may come after Wednesday.
For now, IMF chief Kristalina Georgieva said at a Reuters event on Monday that US tariffs were causing anxiety, but said their global economic impact would not be dramatic.
Oxford Economics’ Ryan Sweet predicts Trump will “target some of the biggest criminals” by saying, “hoping for unexpected things.”
In addition to mutual country tariffs, Trump was able to announce additional sector-specific collections, such as medicines and semiconductors. He previously announced that car rates will go into effect Thursday.
Economists expect future Salvo to be able to target 15% of partners with a permanent trade imbalance with the United States, a group that U.S. Treasury Secretary Scott Bescent called the “Dirty 15.”
The US has the largest product deficits with China, the EU, Mexico, Vietnam, Taiwan, Japan, Korea, Canada and India.
US trading partners are in a hurry to minimize exposure, and there are reports suggesting that India could lower some obligations.
President of European Central Bank Christine Lagarde on Monday said Europe should move towards economic independence, telling Inter-French Radio that Europe is facing an “existential moment.”
Separately, British Prime Minister Kiel Starmer spoke with Trump about “productive negotiations” towards the UK trade deal, but German Prime Minister Olaf Scholz said the EU was open to compromising Trump, but to compromise.
Greta Peish, a partner at law firm Wiley Lane, said it was “completely possible” for fresh tariffs to be reduced or put on hold quickly.
In February, Washington suspended Mexico and Canada imports for a month as North American neighbors pursued negotiations.
Agence France-Presse
