Trump announces sweeping tariffs on imports, escalating global trade war

US President Donald Trump gestures as he delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., US, April 2, 2025. (Reuters)
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Updated 03 April 2025
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Trump announces sweeping tariffs on imports, escalating global trade war

  • Trump announces 10 percent baseline tariff
  • Higher reciprocal tariffs on many US trading partners

WASHINGTON: President Donald Trump on Wednesday unveiled a 10 percent minimum tariff on most goods imported to the United States, with much higher duties on products from dozens of countries, kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.
The sweeping duties, which drew bewildered condemnation from many long-standing US allies who found themselves tagged with unexpectedly high tariff rates, promise to erect new barriers around the world’s largest consumer economy, reversing decades of trade liberalization that have shaped the global order.
Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine.
US Treasury chief Scott Bessent urged other countries to not retaliate.
“Let’s see where this goes, because if you retaliate, that’s how we get escalation,” Bessent told CNN. “Doing anything rash would be unwise,” he added.
Bessent was asked how he expected stock markets to react to the tariffs to which he replied by saying: “I don’t know.”
Stocks slumped after the announcement. Japan’s Nikkei hit an eight-month low in early trading on Thursday, while US and European stock futures dropped sharply following weeks of volatile trading driven by uncertainty over the escalating trade war.
US stocks have erased nearly $5 trillion of value since mid-February.
Chinese imports will be hit with a 34 percent tariff, on top of the 20 percent Trump previously imposed, bringing the total new levy to 54 percent. Close US allies were not spared, including the European Union, which faces a 20 percent tariff, and Japan, which is targeted for a 24 percent rate. The base rates go into effect on April 5 and the higher reciprocal rates on April 9.
The effective US import tax rate has shot to 22 percent under Trump from just 2.5 percent in 2024, according to the head of US research at Fitch Ratings.
“That rate was last seen around 1910,” Olu Sonola said in a statement. “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.”
The “reciprocal” tariffs, Trump said, were a response to duties and other non-tariff barriers put on US goods. He argued that the new levies will boost manufacturing jobs at home.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said at an event in the White House Rose Garden.
Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars.
Canada and Mexico, the two largest US trading partners, already face 25 percent tariffs on many goods and will not face additional levies from Wednesday’s announcement.
Even some fellow Republicans have expressed concern about Trump’s aggressive trade policy.
Within hours of Wednesday’s announcement, the Senate voted 51-48 to approve legislation that would terminate Trump’s Canadian tariffs, with a handful of Republicans breaking with the president. Passage in the Republican-controlled US House of Representatives, however, was seen as unlikely.
Trump’s top economist, Stephen Miran, told Fox Business on Wednesday the tariffs would work out well for the US in the long run, even if they cause some initial disruption.
“Are there going to be short-term bumps as a result? Absolutely,” Miran, the chairman of Trump’s Council of Economic Advisers, told the network’s “Kudlow” program.

 

Ending ‘de minimis’
The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and “certain minerals that are not available in the United States,” according to a White House fact sheet.
Following his remarks, Trump also signed an order to close a trade loophole used to ship low-value packages — those valued at $800 or less — duty-free from China, known as “de minimiz.” The order covers goods from China and Hong Kong and will take effect on May 2, according to the White House, which said the move was intended to curb the flow of fentanyl into the US
Chinese chemical makers are the top suppliers of raw materials purchased by Mexico’s cartels to produce the deadly drug, US anti-narcotics officials say. A Reuters investigation last year showed how traffickers often route these chemicals through the United States by exploiting the de minimiz rule. China has repeatedly denied culpability.
Trump is also planning other tariffs targeting semiconductors, pharmaceuticals, and potentially critical minerals, the official said.
Trump’s barrage of penalties has rattled financial markets and businesses that have relied on trading arrangements that have been in place since the middle of last century.
Earlier in the day, the administration said a separate set of tariffs on auto imports that Trump announced last week will take effect starting on Thursday.
Trump previously imposed 25 percent duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products.
Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.
European leaders reacted with dismay, saying a trade war would hurt consumers and benefit neither side.
“We will do everything we can to work toward 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,” Italy’s prime minister, Giorgia Meloni, said.
US Representative Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, said he would introduce legislation to end the tariffs. Such a bill has little chance of passing the Republican-controlled Congress, however.
“Trump just hit Americans with the largest regressive tax hike in modern history — massive tariffs on all imports. His reckless policies are not only crashing markets, they will disproportionately hurt working families,” Meeks said.

 


Over 100 former senior officials warn against planned staff cuts at US State Department

Updated 04 July 2025
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Over 100 former senior officials warn against planned staff cuts at US State Department

  • State Secretary Rubio faulted for recklessness in amid "unprecedented challenges from strategic competitors, ongoing conflicts, and emerging security threats"

WASHINGTON: More than 130 retired diplomats and other former senior US officials issued an open letter on Thursday criticizing a planned overhaul of the State Department that could see thousands of employees laid off.
“We strongly condemn Secretary of State Marco Rubio’s announced decision to implement sweeping staff reductions and reorganization at the US Department of State,” the officials said in the letter.
The signatories included dozens of former ambassadors and senior officials, including Susan Rice, who served as national security adviser under President Barack Obama, a Democrat.
The timing of the cuts remains unclear, with the US Supreme Court expected to weigh in at any moment on a bid by US President Donald Trump’s administration to halt a judicial order blocking the firings.
The administration in late May notified Congress of a plan to overhaul its diplomatic corps that could cut thousands of jobs, including hundreds of members of its elite Foreign Service who advocate for US interests in the face of growing assertiveness from adversaries such as China and Russia.
Initial plans to send the notices last month were halted after a federal judge on June 13 temporarily blocked the State Department from implementing the reorganization plan.
The shake-up forms part of a push by Trump to shrink the federal bureaucracy, cut what he says is wasteful spending and align what remains with his “America First” priorities.
“At a time when the United States faces unprecedented challenges from strategic competitors, ongoing conflicts, and emerging security threats, Secretary Rubio’s decision to gut the State Department’s institutional knowledge and operational capacity is reckless,” the former officials wrote. 

 

 

 


US Supreme Court sides with Trump in South Sudan deportation fight

Updated 04 July 2025
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US Supreme Court sides with Trump in South Sudan deportation fight

  • Trump administration has sought to deport 8 migrants to unstable South Sudan
  • District judge had said the deportation attempt violated his injunction

WASHINGTON: The US Supreme Court again sided with President Donald Trump’s administration in a legal fight over deporting migrants to countries other than their own, lifting on Thursday limits a judge had imposed to protect eight men who the government sought to send to politically unstable South Sudan.
The court on June 23 put on hold Boston-based US District Judge Brian Murphy’s April 18 injunction requiring migrants set for removal to so-called “third countries” where they have no ties to get a chance to tell officials they are at risk of torture there, while a legal challenge plays out.
The court on Thursday granted a Justice Department request to clarify that its June 23 decision also extended to Murphy’s separate May 21 ruling that the administration had violated his injunction in attempting to send a group of migrants to South Sudan. The US State Department has urged Americans to avoid the African nation “due to crime, kidnapping and armed conflict.”
Two liberal justices, Sonia Sotomayor and Ketanji Brown Jackson, dissented from the decision.
The court said that Murphy should now “cease enforcing the April 18 injunction through the May 21 remedial order.”
Murphy’s May 21 order mandating further procedures for the South Sudan-destined migrants prompted the US government to keep the migrants at a military base in Djibouti. Murphy also clarified at the time that non-US citizens must be given at least 10 days to raise a claim that they fear for their safety.
After the Supreme Court lifted Murphy’s April injunction on June 23, the judge promptly ruled that his May 21 order “remains in full force and effect.” Calling that ruling by the judge a “lawless act of defiance,” the Justice Department the next day urged the Supreme Court to clarify that its action applied to Murphy’s May 21 decision as well.
Murphy’s ruling, the Justice Department said in court filings, has stalled its “lawful attempts to finalize the long-delayed removal of those aliens to South Sudan,” and disrupted diplomatic relations. Its agents are being “forced to house dangerous criminal aliens at a military base in the Horn of Africa that now lies on the borders of a regional conflict,” it added.
Even as it accused the judge of defying the Supreme Court, the administration itself has been accused of violating judicial orders including in the third-country deportation litigation.
The administration has said its third-country policy is critical for removing migrants who commit crimes because their countries of origin are often unwilling to take them back. The Supreme Court has a 6-3 conservative majority. Its three liberal members dissented from the June 23 decision pausing Murphy’s injunction, with Justice Sonia Sotomayor calling it a “gross abuse” of the court’s power that now exposes “thousands to the risk of torture or death.”
After the Department of Homeland Security moved in February to step up rapid deportations to third countries, immigrant rights groups filed a class action lawsuit on behalf of a group of migrants seeking to prevent their removal to such places without notice and a chance to assert the harms they could face.
In March, the administration issued guidance providing that if a third country has given credible diplomatic assurance that it will not persecute or torture migrants, individuals may be deported there “without the need for further procedures.”
Murphy found that the administration’s policy of “executing third-country removals without providing notice and a meaningful opportunity to present fear-based claims” likely violates due process requirements under the US Constitution. Due process generally requires the government to provide notice and an opportunity for a hearing before taking certain adverse actions.
The Justice Department on Tuesday noted in a filing that the administration has received credible diplomatic assurances from South Sudan that the aliens at issue will not be subject to torture.”
The Supreme Court has let Trump implement some contentious immigration policies while the fight over their legality continues to play out. In two decisions in May, it let Trump end humanitarian programs for hundreds of thousands of migrants to live and work in the United States temporarily. The justices, however, faulted the administration’s treatment of some migrants as inadequate under constitutional due process protections.

 


Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk

Updated 03 July 2025
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Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk

  • Two people had been killed in Pokrovsk, a key logistics hub

KYIV: Russian shelling killed five people on Thursday in and near the eastern Ukrainian city of Pokrovsk, the regional governor said, a key target under Russian attack for months.

Vadym Filashkin, writing on the Telegram messaging app, said two people had been killed in Pokrovsk, a key logistics hub, where local authorities have been urging residents to evacuate.

Two died in Bylitske, northwest of Pokrovsk, and another in Illinivka, between Pokrovsk and Kramatorsk, another frequent target in Russia’s slow westward advance through Donetsk region.


University of California reiterates ban on student government boycotts of Israel

Updated 03 July 2025
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University of California reiterates ban on student government boycotts of Israel

SAN FRANCISCO: The president of the University of California this week reiterated that student governments are prohibited from financial boycotts of companies associated with any particular country, including Israel, as the Trump administration continues its probe of alleged antisemitism on college campuses.
Michael Drake did not mention Israel by name, but he did single out student governments in a letter he sent to chancellors of the university system. He said that while freedom of speech and inquiry are core commitments of the university, its policies also require that financial decisions be grounded in sound business practices, such as competitive bidding.
“This principle also applies to student governments,” he wrote. “Actions by University entities to implement boycotts of companies based on their association with a particular country would not align with these sound business practices.”
UC spokesperson Rachel Zaentz said in a statement that the letter is in keeping with the university’s opposition to financial boycotts of companies associated with a particular country.
“While our community members have the right to express their viewpoints, financial boycotts are inconsistent with UC’s commitment to sound business practices, academic freedom and the free exchange of ideas,” she said.
College campuses exploded with pro-Palestinian protests in the wake of the war in Gaza, including a particularly brutal clash involving police at the University of California, Los Angeles last year. At the start of his term this year, President Donald Trump launched antisemitism probes at several universities, including the University of California, Berkeley.
The US Department of Health and Human Services and National Science Foundation are requiring research grantees to certify they will not engage in boycotts of Israel or promote diversity, inclusion and equity or risk federal funding.
The UC Student Association, which represents students across the campuses, did not immediately respond to a request for comment. But its president, Aditi Hariharan, told the Los Angeles Times that she disagreed with the ban.
“Students already have little influence on how the university works, and student government is one of the few places where they can really get involved and have their voices heard,” she said in an interview before the letter was released.


Trump says ‘didn’t make any progress’ on Ukraine during Putin call

Updated 27 min 50 sec ago
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Trump says ‘didn’t make any progress’ on Ukraine during Putin call

  • Putin told Trump Russia will not ‘give up’ aims in Ukraine: Kremlin
  • Ukraine’s Zelensky hopes for Friday call with US president

WASHINGTON/MOSCOW: US President Donald Trump said he had made no progress with Russian counterpart Vladimir Putin toward a ceasefire in Ukraine after the two leaders spoke by phone on Thursday.

“No, I didn’t make any progress with him at all,” Trump told reporters when asked if he had moved closer toward a deal to end Russia’s invasion, adding that he was “not happy” about the ongoing war.

The Kremlin earlier said Putin told Trump that Moscow will not “give up” on its aims in Ukraine.

The pair spoke as US-led peace talks on ending the more than three-year-old conflict in Ukraine have stalled and after Washington paused some weapons shipments to Kyiv.
The Kremlin said the call lasted almost an hour.

Trump has been frustrated with both Moscow and Kyiv as US efforts to end fighting have yielded no breakthrough.
“Our president said that Russia will achieve the aims it set, that is to say the elimination of the root causes that led to the current state of affairs,” Kremlin aide Yuri Ushakov told reporters.
“Russia will not give up on these aims.”
Moscow has long described its maximalist aims in Ukraine as getting rid of the “root causes” of the conflict, demanding that Kyiv give up its NATO ambitions.
Moscow’s offensive in Ukraine has killed hundreds of thousands of people and Russia now controls large swathes of eastern and southern Ukraine.
Even so, Putin told Trump that Moscow would continue to take part in negotiations.
“He also spoke of the readiness of the Russian side to continue the negotiation process,” Ushakov added.
“Vladimir Putin said that we are continuing to look for a political, negotiated solution to the conflict,” Ushakov said.
Moscow has for months refused to agree to a US-proposed ceasefire in Ukraine.
Kyiv and its Western allies have accused Putin of dragging out the process while pushing on with Russia’s advance in Ukraine.
The Kremlin said that Putin had also “stressed” to Trump that all conflicts in the Middle East should be solved “diplomatically,” after the US struck nuclear sites in Russia’s ally Iran.
Putin and Trump spoke as Kyiv said that Russian strikes on Thursday killed at least eight people in Ukraine.
Ukrainian President Volodymyr Zelensky was visiting ally Denmark on Thursday.
A senior Ukrainian official told AFP that Trump and Zelensky planned to speak to each other on Friday.
The US deciding to pause some weapons shipments has severely hampered Kyiv, which has been reliant on Western military support since Moscow launched its offensive in 2022.
Zelensky told EU allies in Denmark that doubts over US military aid reinforced the need for greater cooperation with Brussels and NATO.
He stressed again that Kyiv had always supported Trump’s “unconditional ceasefire.”
On Wednesday, Kyiv scrambled to clarify with the US what a White House announcement on pausing some weapons shipments meant.
“Continued American support for Ukraine, for our defense, for our people is in our common interest,” Zelensky had said on Wednesday.
Russia has consistently called for Western countries to stop sending weapons to Kyiv.