U.S. President Donald Trump's sweeping new tariffs targeting over 90 countries took effect Thursday at midnight, marking a pivotal moment in global trade relations. The duties – ranging from 10% to 50% – apply to agricultural products, manufactured goods, and technology components, with Asian economies accounting for nearly half of the affected nations.
Trump announced the policy shift on social media, stating: "It's midnight… billions will flow into the USA." The move aligns with his administration's "America First" agenda, which seeks to rebalance what it calls unfair trade practices. Market analysts note immediate reactions in Asian stock markets, particularly in export-driven economies like South Korea and Vietnam.
While the White House describes the tariffs as "reciprocal," World Trade Organization data shows the U.S. maintains lower average import duties than many developing nations. The policy has drawn mixed reactions from APEC members, with some Southeast Asian trade ministers warning of potential supply chain disruptions.
For business leaders and investors, the tariffs introduce new complexities in cross-border operations. "This reshuffles the deck for anyone with exposure to Asian manufacturing hubs," said Singapore-based trade analyst Rajiv Menon. "Companies are already recalculating production costs from Jakarta to Osaka."
The measures come as global economic recovery remains fragile, with IMF projections suggesting the tariffs could reduce worldwide GDP growth by 0.3% in 2024. Academics are particularly focused on how this shift might accelerate regional trade agreements among Asian nations seeking alternatives to U.S. markets.
