Donald Trump Reciprocal Tariffs Highlights: Trump’s tariff order pounds US stocks, Dollar weakens to 6-month low

As US President Donald Trump announced reciprocal tariff on major trade partners across the globe on Wednesday, industry expert Sunil Kharbanda, who is the Co-founder & Chief Revenue Officer at Trezix, called it a "serious but moderated trade action".

"The announcement of a 26% ‘discounted’ reciprocal tariff on Indian automobile exports by the U.S. signals a serious, though moderated, trade action. While it’s lower than India’s 70% tariff on U.S. auto imports, it still places Indian exporters at a disadvantage, especially compared to countries facing a 10% baseline," Sunil Kharbanda said.

"With Indian auto exports to the U.S. valued at over $1.5 billion annually, this move could lead to a $400–500 million impact through reduced price competitiveness, thinner margins, and possible order losses. The decision may also pressure India to reassess its own tariff structures and accelerate trade negotiations, while pushing exporters to diversify markets and upgrade value chains in response," Kharbanda further added.

US President Donald Trump announced a sweeping reciprocal tariffs ranging from 10% to 49% on its trading partners globally and called the act as "Liberation Day". However, the White House gave a limited representation on how these tariffs were calculated.

Trump, who has framed April 2 as “Liberation Day,” described the tariffs as a landmark moment in US economic policy. “This is one of the most important days in American history,” he said during an announcement on Wednesday. The measures affect key economies, including India, and are intended to rebalance what Trump perceives as long-standing trade inequities.

A chart displayed during the announcement outlined the specific tariff rates imposed on various countries, with Trump explaining that the figures were derived from existing tariffs those nations apply to US exports. “We will charge them approximately half of what they are and have been charging us,” he said, suggesting that the new duties stop short of full parity.

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US President Donald Trump, who announced reciprocal tariffs against its trading partners globally, declared a list of all the countries which have been sanctioned of tariffs ranging from 10% to 49% but President Vladimir Putin led Russia was missing from the list.

White House Press Secretary Karoline Leavitt on Wednesday said that Russia was left out of the reciprocal tariff list as US sanctions already "preclude any meaningful trade."

However, Leavitt added that Russia could still face additional strong sanctions by the United States, a report by Axios added.

Taiwan's cabinet convened a meeting on Thursday after US President Donald Trump imposed 32% reciprocal tariff and called it "highly unreasonable".

Taiwan in a statement said "The tariffs does not reflect the actual economic and trade situation between Taiwan and the United States," BBC reported.

Taiwan's Premier Cho Jung-tai has reportedly made serious representation before the US representatives against the reciprocal tariffs imposed on Taiwan.

US President Donald Trump imposed 10% to 49% reciprocal tariff on its trade partners globally and it has sent shockwaves in the market and countries throughout. Trump celebrated the act and called it "Liberation Day" against all major trading partners.

The US runs a trade deficit of around $1.2 trillion. Trade deficit is the difference between the value of goods the US exports and the value of goods the US imports. A trade deficit (shown with a minus sign) of more than a trillion dollars means the US imports a trillion dollars worth more of goods than it exports.

There were two sets of tariffs announced. One, a base tariff of 10% against all countries. This in itself is a sharp increase from the pre-Trump 2.0 tariff rate of around 2.5%. This base rate of tariffs will go into effect on April 5.

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Australian Prime Minister Anthony Albanese has condemned the 10% reciprocal tariffs imposed by US President Donald Trump on the country’s exports as “totally unwarranted.”

Calling the act of tariff imposition "not an act of friend", PM Albanese during a press briefing said "These tariffs are not unexpected, but let me be clear, they are totally unwarranted. President Trump referred to reciprocal tariffs. A reciprocal tariff would be zero, not 10%."

However, the Australian prime minister informed that the country has ruled out imposing any countermeasures or retaliatory tactics against the US, saying it is the American consumers who will “pay the biggest price.”

Automobile manufacturer Stellantis has announced to shut Canada's Windsor plant for at least two weeks in response to reciprocal tariffs announced by US President Donald Trump on Wednesday.

Canadian labour union Unifor, in a post on Facebook said that the major reason for shutting down the car plant for two weeks is the reciprocal tariff announcement by President Trump.

India imposes its “own uniquely burdensome” testing and certification requirements in sectors such as chemicals, telecom products, and medical devices, making it "difficult or costly" for American companies to sell their products in the country, the White House said.

In a fact sheet issued after US President Donald Trump announced sweeping reciprocal tariffs on countries that levy taxes on US goods, the White House stated that non-tariff barriers—meant to limit the quantity of imports/exports and protect domestic industries—also deprive US manufacturers of reciprocal access to markets around the world.

Citing the example of India, the White House fact sheet said: "India imposes its own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India. If these barriers were removed, it is estimated that US exports would increase by at least USD 5.3 billion annually.”

Trump announced a 26 per cent “discounted reciprocal tariff” on India, half of the 52 per cent levies imposed by the country on American goods, as he described India as “very, very tough.” The fact sheet, titled ‘President Donald J Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security', noted that Trump has declared that foreign trade and economic practices have created a national emergency, and his order imposes responsive tariffs to strengthen the international economic position of the United States and protect American workers.

On the issue of addressing trade imbalances, the White House said that Trump is working to level the playing field for American businesses and workers by confronting the unfair tariff disparities and non-tariff barriers imposed by other countries.

- PTI

The sweeping tariffs announced by US President Donald Trump has targeted remote and uninhabited islands, including the remote Heard and McDonald Islands which are reportedly completely uninhabited and is closer to Antarctica.

Trump administration has imposed 10% tariffs on goods from the Heard and McDonald Islands which is an Australian territory, as per a document provided by the White House.

As per an NBC News report, Trump's tariff announcement also targeted other small islands with 10% tariff imposition. The US administration imposed tariff on Tokelau, a dependent territory of New Zealand which has a total population of 1,600 and another Australian territory, Cocos Islands, which has about 600 people.

Asian markets and US futures tumbled Thursday following US President Donald Trump's announcement of big increases in tariffs on imports of goods from around the world. Tokyo's Nikkei 225 index dipped more than 3.4 per cent, but recovered slightly. It was down 2.9 per cent at 34,699.52.

Trump said he was imposing a 24 per cent “reciprocal tariff” on Japan, one of the United States' closest allies.

South Korea, also an ally, was hit with a 25 per cent tariff. Its benchmark Kospi slumped 1.9 per cent soon after the opening, to 2,459.30.

In Australia, the S&P/ASX 200 fell 1.8 per cent to 7,793.10. The future for the S&P 500 dropped 3% while that for the Dow Jones Industrial Average lost 2 per cent, auguring potential losses when US markets reopen on Thursday.

On Wednesday, US stocks whipped through another dizzying day before Trump's unveiling of his “Liberation Day” tariffs.

The S&P 500 rose 0.7 per cent to 5,670.97 after careening between an earlier loss of 1.1 per cent and a later gain of 1.1 per cent. It's had a pattern this week of opening with sharp drops only to finish the day higher. The Dow Jones Industrial Average added 0.6 per cent to 42,225.32, and the Nasdaq composite climbed 0.9 per cent to 17,601.05.

Elon Musk's Tesla helped knock the market around after initially falling more than 6% following a report that it delivered fewer electric vehicles in the first three months of the year than it did in last year's first quarter. It closed 5.3 per cent higher.

- AP

As US President Donald Trump announced a major reciprocal tariffs on all its trading partners globally, ranging from 10% to 48%, the international reactions have started to pour in in response to the tariffs announced by the United States.

Here is a list of some world leaders who have reacted to Trump's reciprocal tariff announcement:

Colombian Foreign Minister Laura Sarabia: "We are looking at the measures, above all in order to protect national industry and our exporters."

South Korean Acting President Han Duck-Soo: "As the global trade war has become a reality, the government must pour all its capabilities to overcome the trade crisis."

Brazil's government: "Brazil is evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization, in defense of legitimate national interests."

Swedish Prime Minister Ulf Kristersson: "We don't want growing trade barriers. We don't want a trade war... We want to find our way back to a path of trade and cooperation together with the US, so that people in our countries can enjoy a better life."

Italian Prime Minister Giorgia Meloni: "“We will do everything we can to work towards an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players.”

Poland Prime Minister Donald Tusk: "Friendship means partnership. Partnership means really and truly reciprocal tariffs. Adequate decisions are needed."

Canada Prime Minister Mark Carney: "During this crisis, we must act with purpose and force. My government will fight U.S. tariffs, protect Canadian workers and industries, and build the strongest economy in the G7."

Brazil has said on Wednesday that it is assessing all possible responses and actions needed to be taken in response to the 10% reciprocal tariff announcement by US President Donald Trump, while its Congress approved a bill outlining the details of the trade retaliation.

The Brazilian government, in a statement said, "The Brazilian government is evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization, in defense of legitimate national interests," as reported by Reuters.

Brazil's Congress approved a bill wherein the framework is ready to counter trade retaliation, however, the bill still requires final signatures of President Luiz Inacio Lula da Silva.

The text of the bill did not mention United States specifically, but its establishes a legal framework for Brazil to take action against potential unilateral trade measures targeting its goods and services, including countermeasures such as tariffs.

US President Donald Trump's new tariffs announced on Wednesday sent shockwaves through global markets amid worries the aggressive duties will slow growth, hit corporate earnings and stoke inflation, with one analyst calling the move markets' "worst-case scenario."

Global markets have been whiplashed since Trump took office and kept up a stream of rhetoric that threatened to unleash a global trade war. Trump's new levies crystallized those fears. He set a baseline of 10% across all imports and higher duties on some of the U.S.'s biggest trading partners.

Taken together, the duties will erect new barriers around the world's largest consumer economy, reversing decades of trade liberalization that have shaped the global order following World War Two. In interviews, several investors and analysts said the rhetoric around tariffs had already caused an economic slowdown, hitting both consumer and corporate confidence. The big unknown now is how trading partners will react, they said. While Wednesday's announcement provided a baseline, it is likely to be followed by months of negotiations and debilitating uncertainty.

In the United States, stocks future fell as Trump spoke, with S&P 500 E-minis down 3.5%. In currencies, the dollar fell 0.9% against the yen at 148 yen, while the Mexican peso was about 0.4% lower. Prices of safe-havens assets such as gold and Treasury rose.

In his speech at the White House Rose Garden, Trump cast the levies in terms of fairness, arguing that the "reciprocal" tariffs were a response to duties and other non-tariff barriers put on U.S. goods.

- Reuters

In a major setback to US President Donald Trump, who announced reciprocal tariffs for all countries on Wednesday, the US Senate has passed a resolution to thwart the imposition of tariffs on Canadian imports, just hours after the president announced his plans to exert reciprocal pressure on international trade.

The US Senate resolution was passed by 51-48 vote as some Republicans ditched the US presidents call for a reciprocal tariff on Canada. However, the Senate resolution has little chance to pass the US House of Representatives as it majorly controlled by the Republicans.

Trump earlier on Wednesday singled out the four Republicans — Senators Lisa Murkowski of Alaska, Susan Collins of Maine, Mitch McConnell of Kentucky and Rand Paul of Kentucky — who voted in favor of the resolution.

Canada's Prime Minister Mark Carney has said that Ottawa will deal with US President Donald Trump's announcement of reciprocal tariffs with necessary countermeasures.

PM Carney, who was on his way to a cabinet meeting said, "It's essential to act with purpose and with force, and that's what we will do," BBC reported.

US Treasury Secretary Scott Bessent has warned the countries across the world which have been affected by the tariff announcement of President Donald Trump to not respond to it.

Secretary Bessent told Fox News, "My advice to every country right now is, do not retaliate. If you don't retaliate, this is the high watermark."

Bessent further warned that "Sit back, take it in, let's see how it goes. Because if you retaliate, there will be escalation," BBC quoted him as saying.