If you failed to spot America being \u201clooted, pillaged, raped and plundered by nations near and far\u201d or it being cruelly denied a \u201cturn to prosper\u201d, then congratulations: you have a firmer grip on reality than the president of the United States. It\u2019s hard to know which is more unsettling: that the leader of the free world could spout complete drivel about its most successful and admired economy. Or the fact that on April 2nd, spurred on by his delusions, Donald Trump announced the biggest break in America\u2019s trade policy in over a century\u2014and committed the most profound, harmful and unnecessary economic error in the modern era.<\/p>\n\n\n\n
Speaking in the Rose Garden of the White House, the president announced new \u201creciprocal\u201d tariffs on almost all America\u2019s trading partners. There will be levies of 34% on China, 27% on India, 24% on Japan and 20% on the European Union. Many small economies face swingeing rates; all targets face a tariff of at least 10%. Including existing duties, the total levy on China will now be 65%. Canada and Mexico were spared additional tariffs, and the new levies will not be added to industry-specific measures, such as a 25% tariff on cars, or a promised tariff on semiconductors. But America\u2019s overall tariff rate will soar above its Depression-era level back to the 19th century.<\/p>\n\n\n\n
Mr Trump called it one of the most important days in American history. He is almost right. His \u201cLiberation Day\u201d heralds America\u2019s total abandonment of the world trading order and embrace of protectionism.\u00a0<\/p>\n\n\n\n
Read it all<\/a>.<\/p> \u201cRuination Day\u201d: The new Economist cover amid Trump\u2019s tariff war.
Trump has launched a global trade war, calling it a \u201cLiberation Day.\u201d As an economist, I know a thing or two about tariffs. So here are some predictions of what we should expect if this tariff war continues.
1\/n pic.twitter.com\/9uvVTcskmr<\/a><\/p>— Roman Sheremeta 🇺🇸🇺🇦 (@rshereme) April 3, 2025<\/a><\/blockquote>