US starts collecting Trump’s 10% tariff, smashing global trade norms

 On April 5, 2025, the United States initiated the collection of a universal 10% tariff on imports from numerous countries, marking a significant departure from established global trade practices. This action follows President Donald Trump's declaration of a national emergency to address what he termed a "large and persistent U.S. trade deficit," invoking the International Emergency Economic Powers Act (IEEPA) to implement these tariffs. ​

Key Details:

• Baseline Tariff: A 10% tariff now applies universally to imports from many countries, excluding Canada and Mexico, which are largely exempt under the United States-Mexico-Canada Agreement (USMCA). ​

• Higher Tariffs on Specific Countries: Beginning April 9, 2025, elevated tariffs will target 57 major trading partners. For instance, the European Union faces a 20% tariff, China a total of 54%, Japan 24%, and Vietnam 46%. ​

Global Reactions:

• China's Response: China swiftly imposed retaliatory measures, including a 34% tariff on U.S. goods and restrictions on rare earth exports. ​

• Other Nations: Countries such as the United Kingdom and Israel have expressed intentions to negotiate with the U.S. to mitigate the impact of these tariffs. ​

Economic Impact:

The introduction of these tariffs has led to significant market volatility:​

• Stock Market Declines: Major indices, including the S&P 500, Dow Jones, and Nasdaq, each experienced drops exceeding 5%. ​

• Investor Concerns: There is growing apprehension about potential recessions and increased consumer prices, exemplified by projections of substantial price hikes on goods such as smartphones. ​

This policy shift represents a profound change in U.S. trade strategy, moving away from the post-World War II consensus on mutually agreed tariff rates and prompting widespread debate on its implications for global economic stability.​