Trump tariffs kick into effect, allies react, China takes jab: Key updates as global trade war escalates | World News
The global economy braced for fresh turbulence on Saturday as sweeping new US tariffs took effect, igniting tensions with key allies and trade partners. A 10 per cent “baseline” tariff was officially imposed at midnight across US ports and customs points, hitting goods from countries including Australia, the UK, Colombia, Argentina, Egypt and Saudi Arabia. The next in line, will be 57 nations, including key US allies such as the UK, Japan, India and the entire European Union facing even more punishing levies—ranging from 11 per cent to a staggering 50 per cent— starting next week, and further escalating trade fears.
Trump doubles down on tariffs: President Donald Trump defended his global tariff blitz on Saturday, warning of short-term pain but vowing “horic” long-term gains. “This is an economic revolution, and we will win,” he declared on Truth Social. Calling the US a former “whipping post,” Trump said the country is finally “bringing back jobs and businesses like never before.” He urged Americans to “hang tough” as the trade upheaval continues.
After lashing out at China’s counter-tariffs, Trump extended TikTok’s operating deadline 75 days and offered a potential deal: ease trade levies in exchange for Beijing’s approval of TikTok’s US sale. Beijing has yet to respond officially, with the Qingming holiday underway.
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China doubles down: China vowed to take “resolute measures” to safeguard its sovereignty and development interests after President Trump’s tariff escalation. The foreign minry called on the US to “stop using tariffs as a weapon,” accusing Washington of undermining the rights of the Chinese people. Beijing also said “the market has spoken” in rejecting Trump’s tariffs, and called on Washington for “equal-footed consultation”. The remarks follow Beijing’s retaliation with 34 per cent levies on US goods and new export restrictions on rare earths.
UK urges restraint, avoids rush to retaliate: In its first official response, Downing Street said PM Keir Starmer’s government would not be pressured into a swift retaliation to Trump’s new tariffs. “The UK’s response will be guided the national interest,” a spokesperson said. Starmer, is also expected to spend the weekend speaking to foreign leaders about the tariffs, after calls with the prime miners of Australia and Italy on Friday in which the leaders agreed that a trade war would be “extremely damaging”.
Iran’s president slams US policies as global humiliation: Iranian President Masoud Pezeshkian on Saturday condemned recent US measures, including sweeping tariffs, saying they extend beyond Iran. “Today, America is not only humiliating Iran, but also the world,” Pezeshkian said, in a pointed rebuke of President Trump’s economic policies. Meanwhile, Iran’s currency plummeted to a record low of 1,043,000 rials per dollar as markets reopened post-Nowruz holidays. Traders in Tehran’s money exchange hubs halted rate displays amid growing panic. The rial’s collapse is linked to renewed US sanctions under Trump’s “maximum pressure” campaign.
Taiwan consults tech leaders: Taiwan President Lai Ching-te met top tech executives, including TSMC and Foxconn reps, to strategise on the US’s new 32 per cent tariffs. While semiconductors are exempt, Taiwan’s broader ICT sector is bracing for impact. Lai promised financial support and reaffirmed Taiwan’s global trade competitiveness, amid media reports of an NT$88 billion relief package.Story continues below this ad
Italy urges restraint: Italian Economy Miner Giancarlo Giorgetti warned against retaliatory tariffs on the US, calling instead for “cool heads” and a “de-escalation.” He also pressed the EU to allow more budget flexibility, citing Italy’s slow growth and mounting debt. Italy faces a 20 per cent US tariff under Trump’s sweeping new plan, sparking concerns over EU economic policy cohesion.
Nissan eyes US shift: Japan’s Nissan is weighing the relocation of some vehicle production to the US to avoid Trump’s new tariffs. The company may scale down operations at its Fukuoka plant and expand Rogue SUV manufacturing in Tennessee. This follows Nissan’s recent pause in US orders for two Mexican-built Infiniti models, already hit tariffs.
Jaguar Land Rover pauses US shipments: UK carmaker Jaguar Land Rover is temporarily halting US-bound exports from Britain due to the 25 per cent tariff on cars and light trucks. The move affects models like the Range Rover and Defender. The company has a two-month US inventory buffer, but the pause has raised alarms over the future of UK automotive exports.
Netanyahu to meet Trump: Israeli PM Benjamin Netanyahu is set to visit White House Monday for urgent talks on US tariffs. Trump’s new policy places a 17 per cent duty on some Israeli exports, prompting concerns in Tel Aviv. The visit may also touch on Iran and the Gaza conflict. Israel, which recently lifted its own tariffs on US imports, seeks exemptions.Story continues below this ad
Pakan forms crisis response teams: Pakan’s interim Prime Miner Shehbaz Sharif has convened emergency economic consultations after the US imposed a 29 per cent tariff on Pakani exports. Finance Miner Muhammad Aurangzeb said two high-level committees have been formed to craft a strategic response. “You should never let a good crisis go to waste,” Aurangzeb noted, signalling Pakan’s intent to turn the setback into an opportunity for long-term engagement with Washington.
Bangladesh calls emergency meeting: Bangladesh’s interim leader convened an emergency meeting on Saturday after industry leaders warned that steep new US tariffs posed a “massive blow” to the country’s vital textile sector. The US raised duties to 37 per cent on Bangladeshi exports—up from 16 per cent on cotton products and 32 per cent on polyester — threatening the competitiveness of the world’s second-largest garment manufacturing hub.
(With Reuters inputs)
