U.S. Tariffs: A Major Blow to the Global Economy That Could Lead to a World Economic Crisis

Trump Announces Comprehensive Tariffs on Imports Based on the Principle of Reciprocity

On Wednesday, U.S. President Donald Trump announced the imposition of comprehensive tariffs on imports based on the principle of reciprocity with various countries worldwide, aiming to bolster the manufacturing sector in the United States. However, this increase will likely raise the risks of price hikes and trigger trade wars.

In a press conference entitled “Restoring America’s Wealth” at the White House, Trump revealed tariffs on most countries, with the lowest being a 10% tax on imports from the United Kingdom and many Arab countries.

The tariffs varied for other nations with significant economic interactions with the U.S., including Colombia, which faced the highest tariffs at 49%, followed by Vietnam at 46%, surpassing China, where tariffs on its goods reached 34%.

Additionally, the U.S. President announced a 25% tariff on cars manufactured outside the United States, effective from midnight local time.

During the press conference in the White House garden, Trump described these tariffs as “our declaration of economic independence,” noting that for years, hardworking American citizens have struggled while other nations became wealthier and stronger, often at their expense. “But now it’s our turn to prosper,” he stated.

U.S. Tariffs on Imported Cars Take Effect

The U.S. tariffs on imported cars came into effect on Thursday, which is likely to escalate trade tensions with key partners amid growing concerns about rising consumer prices.

Starting Thursday at 04:01 GMT, cars manufactured outside the U.S. are now subject to an additional 25% tariff, representing a severe blow to the global automotive industry. Similar tariffs on auto parts will take effect next month.

Trump’s update on the auto tariffs from last week includes nearly 150 categories of car parts that will be subject to tariffs starting May 3, a month after the 25% tariffs on car imports were activated at midnight Thursday.

The list includes tariff codes for engines, transmissions, lithium-ion batteries, and other major components, as well as less expensive parts, including tires, shock absorber components, spark plug wires, and brake hoses.

However, the list also includes car computers, which share the same four-digit tariff code covering all computers, including laptops, desktops, and hard drives. U.S. Census Bureau data shows that the value of imports in this category reached $138.5 billion in 2024.

China Urges Washington to Immediately Cancel Its New Tariffs

On Thursday, China’s Ministry of Commerce called on Washington to “immediately cancel” the tariffs recently imposed by President Donald Trump on countries worldwide, warning that these tariffs “endanger global economic development” and harm U.S. interests and international supply chains.

In a statement, the ministry urged the U.S. to immediately revoke unilateral tariff measures and resolve disputes with trade partners amicably through equitable dialogue, emphasizing that “there are no winners in a trade war, and there is no exit from protectionism.”

Von der Leyen: U.S. Tariffs Are a Major Blow to the Global Economy

European Commission President Ursula von der Leyen stated that the new tariffs announced by U.S. President Donald Trump represent a “major blow” to the global economy.

Von der Leyen expressed her “deep regret” over Trump’s decision, stating that Europeans are “prepared to respond” and are working on “a new package of countermeasures” should negotiations with the U.S. administration fail.

The German Automotive Industry Association (VDA) condemned the tariffs, calling for the European Union to respond strongly, as they would “cause significant losses,” while simultaneously urging the EU to “continue expressing its willingness to negotiate.”

The association also warned that the losses would not be limited to Germany but would impact U.S. consumers and the American automotive industry itself.

Furthermore, the association urged Brussels to forge free trade agreements “with as many regions of the world as possible” to position the European Union as a champion of free and fair global trade.