President Donald Trump announced a new tariff policy on Wednesday, imposing a 10% baseline duty on all imports while targeting select countries with additional levies.
China faces the steepest tariff at 34%, followed by the European Union at 20%.
The move, aimed at addressing what Trump calls unfair trade practices, marks a significant shift in US economic policy.
“We have a lot of very good news today,” Trump said at a White House event, emphasizing the tariffs as a measure of economic reciprocity.
Markets initially rallied on expectations of a more moderate tariff approach but quickly reversed course as the full scope of the policy became clear.
“The U.S. president caused some impressive gyrations in markets with his tariff announcement,” said Chris Beauchamp, chief market analyst at IG. “Trump’s initial remarks suggested a 10% tariff across the board, sending stocks higher, but the full range of tariffs deals a remarkable blow to the global trading system.”
The news has sent futures sharply lower and has boosted the dollar," Beauchamp noted.
"Stocks had rallied into today's news, and this scenario is far worse than had been anticipated. After a brief relief rally, the outlook for equity markets seems grim."