The "mother of all trade battles" is coming: Trump's new tariffs come into effect!

Donald Trump will begin today the "mother of all trade battles" - the one he has been promising since his election campaign, with new tariffs that he says will usher in America's "golden age" but could shake the global economy, AFP reported, quoted by BTA.

According to his spokeswoman, the American president was busy yesterday "fine-tuning" his plan, the content and scale of which remain a mystery. “The pillaging of America is over“, said Caroline Levitt, specifying that the new tariffs will take effect “immediately“.

They will be introduced on Donald Trump's so-called Liberation Day, during a ceremony at the White House at 4:00 p.m. local time (11:00 p.m. Bulgarian time). That means just after the New York Stock Exchange closes, which has already begun to shake, as well as other markets around the world.
The American administration has not commented on media reports that it is considering introducing a flat 20% tax on all imported goods, instead of tariffs determined according to the origin of the products.

However, the American president has sown doubts about the severity of his protectionist measures, assuring on Monday that he will be “very kind” to the US's trading partners. In the face of this uncertainty, countries are preparing with a mix of tough statements, willingness to engage in dialogue and gestures of concession.

New Canadian Prime Minister Mark Carney said his country, whose economy is closely tied to the United States, would be "very careful" in deciding how to respond to "unjustified measures by the American government".

"We don't necessarily want to retaliate" but "we have a clear plan to do so if necessary", warned European Commission President Ursula von der Leyen.

Some countries are hoping for a more lenient approach, such as Vietnam, which has announced tariff cuts on a number of goods.

London is also "working tirelessly" to achieve a bilateral trade deal with Washington and avoid heavy tariffs, but “there will probably be tariffs“, British Prime Minister Keir Starmer admitted yesterday.

Over the weekend, Beijing, Tokyo and Seoul said they wanted to “accelerate“ negotiations on a free trade agreement. European officials also expressed a desire to strengthen ties between the EU and Canada.

Yesterday, Israeli Finance Minister Bezalel Smotrich signed a directive to eliminate all remaining tariffs on imports from the US with immediate effect in an apparent attempt to get a reprieve from the Trump administration imposing reciprocal tariffs, the "Times of Israel" reported. The order was agreed with Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat, but is subject to final approval by the Knesset Finance Committee.

The Republican cannot afford to back down completely from his threats, AFP reports. He presents the tariffs - which he calls "the most beautiful word in the dictionary" - as a magic wand capable of reviving American industry, balancing the trade balance and reducing the budget deficit.

Enchanted by the protectionism that dominated the American economy in the late 19th and early 20th centuries, Trump, who was elected on a promise to reduce the cost of living, has so far ignored concerns about rising inflation or a stock market crash.

Analysts at "Goldman Sachs" However, they warned in a report that a wave of tariffs could have the same negative effect on the economy as tax increases, hitting consumption and purchasing power.

Since returning to the White House, Donald Trump has already increased tariffs on Chinese goods, some imports from neighboring Mexico and Canada, as well as on steel and aluminum - regardless of the country of origin.

Last night, on the eve of “Liberation Day”, the New York Stock Exchange closed without a clear direction. The Dow Jones ended almost flat (-0.03%), while the Nasdaq rose 0.87% and the broader S&P 500 index rose 0.38%. However, the market moved up and down during the session.

Tomorrow, Washington also plans to impose an additional 25% tariff on imported cars and auto parts.