“COULDN’T CARE LESS”
Major economies including the European Union and Canada have vowed retaliation.
“We are going to be very deliberate in terms of the measures we take, to fight for Canada,” Canadian Prime Minister Mark Carney said on Tuesday.
The European Union, which Trump has accused of trying to “screw” the United States, said Tuesday it still hoped to negotiate a solution – but that “all instruments are on the table” to retaliate.
British Prime Minister Keir Starmer spoke with Trump on “productive negotiations” towards a trade deal between the US and the United Kingdom. Vietnam said on Tuesday that it would slash duties on a range of goods to appease Trump.
Meanwhile, other top exporters are seeking to build up alliances to counter Washington, with China, Japan and South Korea speeding up talks on a free trade agreement.
Mexico lowered its 2025 growth forecast on Tuesday, citing tensions with its largest trading partner.
Speculation about what Trump has in store has been stoking uncertainty on trading floors.
And HSBC strategists led by Max Kettner warned that Wednesday’s announcement might not end the tariff uncertainty.
“We’d argue the potential is in fact higher for the Apr 2 deadline to introduce even more uncertainty – and hence prolonged broad-based weakness in leading indicators,” they said.
The former property tycoon insists the levies will bring a “rebirth” of America’s hollowed-out manufacturing capacity, and says companies can avoid tariffs by moving to the United States.
Sweeping auto tariffs of 25 per cent are also due to come into effect on Thursday.
A 25 per cent tariff on steel and aluminium from around the world came into effect in mid-March.
China was hit in March with an additional 20 per cent tariff on all goods, triggering retaliatory duties from Beijing. The EU has unveiled its own measures to start mid-April.
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