Fitch Ratings analyst says Trump tariffs threaten to tilt parts of the world into recession
Olu Sonola, head of U.S. economic research at Fitch Ratings, wrote in a note that Trump's tariffs threaten to push much of the world into an economic recession.
"The U.S. tariff rate on all imports is now around 22% from 2.5% in 2024. That rate was last seen around 1910," Sonola wrote. "This is a game changer, not only for the US economy but for the global economy. Many countries will likely end up in a recession. You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time."
Policy group calls for Trump to head off 'price-gouging' under tariff cover
Lori Wallach, director of Rethink Trade, an advocacy group within the American Economic Liberties Project, a think tank, said in a statement following Trump's tariffs rollout that he “must take immediate action to stop corporations from using the pretext of these tariffs to price-gouge the very Americans already slammed by decades of bad trade policy and corporate greed.”
While tariffs on certain countries could “help restore America's capacity to produce more of the critical products needed for American families to be healthy and safe,” she said, they should be accompanied by “tax credits to build demand for U.S.-made goods, incentives for investment in new production capacity and bans on stock buybacks, and easier union formation so gains go to wages, not just profits.”
Poland's prime minister: Adequate decisions are needed
In a somewhat cryptic post on X, Poland Prime Minister Donald Tusk wrote: "Friendship means partnership. Partnership means really and truly reciprocal tariffs. Adequate decisions are needed." He added the E.U. and U.S. flag emojis.
Trump's reciprocal tariff on the E.U. is set to be 20%.
Italy's prime minister says tariffs are 'wrong'
Italian Prime Minister Giorgia Meloni, seen as close to Trump, said today that tariffs introduced by his administration were “wrong” and would not benefit the United States.
“We will do everything we can to work towards an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players,” she said in a statement on Facebook.
“In any case, as always, we will act in the interest of Italy and its economy, also engaging with other European partners,” she added.
Treasury secretary confirms 54% China rate
Treasury Secretary Scott Bessent confirmed to Bloomberg News that goods brought in from China would now face an effective tariff rate of 54% — the sum of its newly imposed 34% rate plus the 20% rate Trump had already instituted in his new administration.
Treasury secretary shrugs off after-hours stock plunge
Asked whether he was concerned by the market moves, Treasury Secretary Scott Bessent told Bloomberg Television that he has “learned not to look at what goes on during after-hours markets.”
Bessent added that the Nasdaq has a “‘mag7’ problem, not a MAGA problem,” referring to seven large tech stocks often called the “magnificent 7.”
"I would advise none of the countries to panic," he added.
Global markets reacted sharply and swiftly after Trump revealed his much-anticipated tariff plans today, with investors fleeing U.S. stock indexes and stocks of companies that rely on global supply chains plummeting.
The ETF (exchange-traded fund) that tracks the S&P 500 plunged more than 2.7%. The fund that tracks the tech-heavy Nasdaq 100 slid more than 3.5%, and fund tracking the Dow indicates it would drop more than 415 points at tomorrow’s opening bell.
Manufacturing group hails Trump's announcement
A group Bloomberg News has described as having "links to steel" has hailed Trump's tariffs announcement.
“Today’s trade action prioritizes domestic manufacturers and America’s workers," Alliance for American Manufacturing President Scott Paul said in a statement. "These hardworking men and women have seen unfair trade cut the ground from beneath their feet for decades. They deserve a fighting chance. Our workers can out-compete anyone in the world, but they need a level playing field to do it. This trade reset is a necessary step in the right direction.”
Trade policy historian: Trump tariffs 'bigger than Smoot-Hawley'
To put today's announcement in perspective, Douglas Irwin, a Dartmouth professor who is a leading expert on the history of economic policy, said on X that Trump's tarrifs are "bigger than Smoot-Hawley."
A Senate webpage describes the Smoot-Hawley tariffs, put in place in the 1930s, as “among the most catastrophic acts in congressional history.”
Trump 's tariffs will vary by country
The tariffs Trump announced today will range from 10% to 49% country by country, according to a handout provided to reporters listing tariffs on 25 countries.
Trump said the level of tariffs the United States will charge on imports from those countries was determined by calculating the level of tariffs and trade barriers those countries have in place on U.S.-made products, though it remains unclear how the White House arrived at those numbers.
Cambodia had the highest tariff rate of 49%, followed by a 46% tariff on goods coming to the United States from Vietnam. The European Union faces a 20% tariff, and China would have an additional tariff of 34%.
National Foreign Trade Council warns consumers will 'see higher prices for everything'
National Foreign Trade Council President Jake Colvin said in a statement after Trump's announcement that consumers "should expect to see higher prices for everything from groceries to home renovations to auto insurance as construction and repair costs rise."
"While the price of imported goods will undoubtedly rise, the president’s tariffs will also tack on added costs to American manufacturing, assembly and farming," he said. "There is simply no way to mitigate all of the added costs of inputs to finished goods from the administration’s complex and growing web of tariffs."