Trump ignites a trade conflict by imposing significant tariffs, including a 10% levy on Argentina. US President Donald Trump has initiated a significant global trade conflict as he imposed a 10-percent tariff on imports from various countries, alongside imposing stringent additional levies on major trading partners.
In a significant announcement from the White House Rose Garden, Trump presented a chart detailing extensive measures, including notably harsh tariffs targeting key trade partners, China and the European Union, during an event he dubbed “Liberation Day.” “In my view, this marks one of the most significant days in American history,” stated Trump. “This marks our formal announcement of economic autonomy.”
The announcement sparked swift backlash, as China cautioned that the tariffs could “endanger” global economic growth. Meanwhile, US ally Australia condemned the move as “not the act of a friend,” and various nations issued threats of retaliation.
Argentina, under the leadership of President Javier Milei, finds itself in a challenging position as it faces a 10-percent tariff on goods entering the United States, despite Milei’s strong ties with the Republican leader. The decision poses a potential threat to the sustainability of sales, as it is expected to increase the cost of Argentine products for consumers in the United States. Milei aims to capitalize on his strategic partnership with the US president in pursuit of an exemption. The leader of La Libertad Avanza is actively advocating for a free-trade agreement with the United States, expressing optimism that his connections with Trump could facilitate the negotiation process.
Trump directed some of his most pointed criticisms at what he referred to as “nations that treat us badly.” The recent developments have resulted in a 34 percent increase in tariffs on goods imported from China, a significant superpower competitor. This adjustment raises the total tariff rate on Chinese imports to 54 percent. Beijing promptly announced its intention to implement countermeasures while advocating for dialogue, cautioning that the imposed levies would have significant detrimental effects on all parties involved. The commerce ministry stated, “There is no winner in a trade war, and protectionism offers no viable exit strategy.”
The European Union reported a figure of 20 percent. The tariffs imposed on Japan reached 24 percent, prompting the country’s trade minister to describe the situation as “extremely regrettable.” In a recent statement, Trump announced plans to implement a “baseline” tariff of 10 percent, which will also affect another significant ally, Britain. The 25 percent auto tariffs announced by Trump last week are set to take effect on Thursday. Trump had earlier enacted a 25 percent tariff on steel and aluminum imports, a move that is set to affect producers in Argentina. He has initiated investigations into the imports of copper and lumber, a move that may result in additional tariffs.
The 78-year-old Republican dismissed concerns about potential upheaval, asserting that the tariffs would usher in a “Golden Age” for the US economy. “For decades, our nation has faced significant exploitation and resource depletion at the hands of various countries, both allies and adversaries,” Trump stated. A carefully selected group of cabinet members and industry workers donned in hard hats from sectors such as steel, oil, and gas erupted in applause as Trump pledged that tariffs would “make America wealthy again.”
On Wednesday, Trump characterized the tariffs as “reciprocal.” However, numerous experts contend that the administration’s projections regarding the levies imposed on US imports by other nations are significantly overstated. The US president has signaled this decision for several weeks, raising concerns about a potential recession domestically as expenses are transferred to American consumers, alongside the risk of a detrimental trade conflict internationally. US Treasury Secretary Scott Bessent issued a cautionary statement regarding potential countermeasures during an appearance on Fox News, asserting, “If you retaliate, there will be escalation.”
Recent data reveals that several trading partners in Asia have experienced significant impacts, with Cambodia facing a 49 percent decline, Vietnam a 46 percent drop, and military-ruled Myanmar, recently affected by a catastrophic earthquake, seeing a 44 percent reduction. A White House official stated that Cuba, Belarus, North Korea, and Russia remain unaffected, as they are already under sanctions related to the Ukraine conflict, which effectively limits any significant trade opportunities. The White House has announced that specific goods, including copper, pharmaceuticals, semiconductors, lumber, and gold, will be exempt from the tariffs.
The situation is likely to heighten concerns that Trump is distancing himself from traditional allies in favor of a new paradigm centered on his interpretation of American dominance. The new tariffs will not impact major US trading partners Canada and Mexico. Former President Trump previously enacted a 25 percent tariff on imports from both nations, while applying a reduced rate on Canadian energy. These duties will remain in effect for the foreseeable future. Products entering the largest economy globally, as per the US-Mexico-Canada Agreement, will continue to enjoy exemption status.
Several of the largest trading partners of the United States in South America, notably Brazil, Chile, and Colombia, have been subjected to a 10-percent levy. Tariffs set at 18 percent will be imposed on imports from Nicaragua. In a significant development, Brazil’s Congress has ratified the “Economic Reciprocity Law,” empowering the Executive branch to counteract the recently imposed 10-percent tariffs on exports from the nation’s economy, the largest in Latin America. The House of Representatives has unanimously approved the law following the Senate’s endorsement.
In 2024, Brazil has positioned itself as the second-largest exporter of steel to the United States, following Canada, with shipments totaling four million tonnes of the metal. Colombian President Gustavo Petro criticized former President Trump for what he described as a misguided decision to impose extensive tariffs. “The US government has adopted a stance that increasing tariffs on imports may bolster domestic production, enhance wealth, and create jobs. However, some experts caution that this strategy could prove to be a significant misstep,” he stated.
Trump’s global tariffs have reached even the most isolated regions of the world, including the uninhabited Heard and McDonald Islands. The Australian territory located in the sub-Antarctic Indian Ocean has been subjected to tariffs on all its exports, despite the fact that the icy archipelago is uninhabited, with the exception of numerous seals, penguins, and various bird species. The Malvinas (Falkland) Islands emerged as a notable addition to the tariffs list, capturing attention in the latest developments. The South Atlantic territory, known for the 1982 conflict between Britain and Argentina, has been hit with a staggering 41 percent tariff on its exports.