Trump’s commercial war: fear of the consequences of US tariffs

Chijioke Obinna

Trump's commercial war: fear of the consequences of US tariffs

Less than 48 hours are missing for “The day of liberation”. This is what the president of the United States, Donald Trump, has called next April 2, the day that “reciprocal tariffs” announced by the tycoon since he returned to the White House will enter into force. “Tariff is the most beautiful word in the dictionary,” he said in the campaign.

This decision keeps the entire world in suspense, but above all to the main allies of the United States: the European Union, Canada, Mexico, China, India, Japan and South Korea. In his social network Truth, the US president has affirmed that it is the moment of revenge: “For decades, all the nations of the world, both friends and enemies They have scammed and mistreated

Even so, according to Trump the tariffs announced by its administration They are “more generous” than those in other countries Against Washington: “They have scammed us as any country has never been scammed in history, and we will be much more friendly than they were with us.” According to the American leader “it is time for the good and old United States to recover part of that money and respect.”

“The dirty 15” and the rest

Although the date marked by Trump is Wednesday, the United States Secretary of the Treasury, Scott Besent has explained in an interview in the Fox that some tariffs “may not have to apply because there is a pre-negotiated agreement”, while in other countries once they receive “the number that represents their tariffs” is possible that “want to negotiate a reduction.”

According to Besent there is a difference between the countries qualified as “the dirty 15” –Those with a higher commercial deficit with the United States– And whose tariffs would quickly come into force, and the rest of the countries. Among those 15 is the European Union, Mexico, China, Canada or Switzerland.

For now, China already suffers from 20% tariffs to their products and the 25% tariffs have also entered into force to aluminum and steel around the world.

These are the tariffs that will come into force on April 2

Taking into account what was announced by the Administration, on April 2 the 25% tariffs for Mexico and Canada and the same percentage for those countries that buy oil to Venezuela, among which is the Spanish company Repsol.

In addition, according to company sources to Europa Press, the Trump government He has revoked the permits and exemptions granted to Repsol and other companies to export oil from Venezuela and must finish their operations before May 27.

The next day, on April 3, the tariffs of the 25% for cars and their components Imported from all over the world, as announced last week.

Threats to Russia and Iran

Similarly, Trump has threatened Russia to impose tariffs “to all oil” that comes out of the country If Putin does not accept a high fire In Ukraine. These tariffs would be between 25% and 50% according to a telephone interview at the NBC and could begin to be applied within a month if at that time there is no agreement on the high fire.

Although Trump has always been more critical of Ukrainian president, Volodimir Zelenski, this time has been the Russian president, Vladimir Putin, who has received the greatest threats. “If Russia and I are unable to arrive an agreement to stop the spill of blood in Ukraine and If I think it is because of Russian fault, it may not be, I will impose secondary tariffs to all the oil that comes out of Russia. “

In this same interview, Trump has also loaded against Iran and warned them that if Tehran does not reach an agreement with Washington on its nuclear program, “there will be bombings as never before has been seen and secondary tariffs, as I did four years ago.” According to the United States, Iran is responsible for enriching uranium At a level above the justifiable because “they are clandestinely developing an agenda of nuclear weapons potentiation,” Efe collects.

Feeling of uncertainty in the US economy

Tariffs announced by Washington generate uncertainty in the US economy, as the Federal Reserve has marked. The Atlanta Federal Reserve Bank in its last week’s forecasts collected a possible severe contraction Of the economy in the first quarter of the year, explains the country.

For its part, the consumer’s feeling index of the University of Michigan has marked Its minimum since November 2022while the chief economist of Oxford Economics says that “tariffs will begin to collect greater tolls in the coming months.”

Chijioke Obinna

I've been passionate about storytelling and journalism since my early days growing up in Lagos. With a background in political science and years of experience in investigative reporting, I aim to bring nuanced perspectives to pressing global issues. Outside of writing, I enjoy exploring Nigeria’s vibrant cultural scene and mentoring young aspiring journalists.