Trump’s Tariff Plan Sparks Global Trade War Fears as Nations Prepare Retaliation

Former U.S. President Donald Trump is set to unveil his much-anticipated tariff policy on April 2, promising immediate implementation. However, this announcement is expected to trigger retaliatory measures from key trading partners, escalating global trade tensions.

Uncertainty Over Trump’s Tariff Strategy

For months, Trump has kept businesses and nations in suspense regarding his “reciprocal tariffs” plan. While he claims to have finalized his decision, White House advisers were still presenting him with options just hours before his announcement. Possible plans include a flat tariff of up to 20% on all imports, selective tariffs on specific countries, or customized rates based on trade imbalances.

Global Reactions and Countermeasures

The European Union, Canada, Mexico, China, Japan, and South Korea have all signaled strong opposition. European Commission President Ursula von der Leyen stated the EU has a “strong plan” to retaliate. China’s Foreign Minister Wang Yi warned of countermeasures against U.S. “blackmail,” while other nations are also preparing responses.

Amidst this tension, Israel became the first country to remove all tariffs on U.S. imports, likely in an attempt to avoid Trump’s wrath. However, even nations reducing tariffs may not be fully shielded from additional trade measures.

Potential Economic Fallout

Trump justifies his tariffs as a way to curb illegal migration, reduce trade imbalances, boost domestic manufacturing, and generate government revenue. He has even suggested tariffs could replace income taxes.

However, economists warn of severe consequences. Tariffs on steel, aluminum, cars, and other imports—set to take effect in May—could lead to price hikes, financial market instability, and even a potential U.S. recession. Analysts at Goldman Sachs doubt Trump’s tax cuts and deregulation plans can offset the economic damage.

As the world waits for Trump’s final decision, businesses and global markets brace for a new phase of trade war uncertainty.