Trump Imposes Reciprocal Tariffs on Foreign Nations, Markets Tumble
US President Donald Trump signed an executive order on Wednesday, enforcing his long-promised reciprocal tariffs on foreign nations, a move that has further unsettled global markets. A minimum 10% tariff will be applied to most countries, with significantly higher rates imposed on what Trump calls the “worst” trade offenders, including China, the European Union, and Vietnam.
Speaking from the White House Rose Garden, Trump framed the decision as a pivotal economic shift, calling it “our declaration of economic independence.” He argued that the tariffs would boost domestic manufacturing, increase government revenue, and counter what he described as unfair foreign trade practices. The new measures include a 34% tariff on Chinese goods, 20% on European Union imports, and over 40% on imports from Vietnam and Sri Lanka. While around 60 nations will face tariffs above 10%, Canada and Mexico are exempt.
The announcement sent markets into a deeper downturn, continuing a decline that began in February when Trump first hinted at the policy. Stock futures plummeted after the announcement, with Nasdaq futures dropping over 2.3% and the S&P 500 falling more than 1.5%, as investors feared increased costs for consumers and potential economic downturns.
