Scott Bessent warns tariffs could peak without retaliation
- Treasury Secretary Scott Bessent announced tariffs, which will impose 10% tariffs across most countries.
- Significantly higher tariffs will be levied on key trading partners like the EU, Japan, Taiwan, and China.
- World leaders are divided on the tariffs, with some condemning them while others hope for negotiations and reconciliation.
In early April 2025, Treasury Secretary Scott Bessent announced new tariffs that are being referred to as 'Liberation Day' tariffs, set to impose 10% tariffs across most countries, with significantly higher rates for key trading partners, such as 20% for the European Union, 24% for Japan, 32% for Taiwan, and 54% for China. This move sparked a mixed array of responses from global leaders, with European Commission President Ursula von der Leyen labeling the tariffs as detrimental to the world economy. While leaders like German Chancellor Olaf Scholz and UK Prime Minister Keir Starmer expressed hope for negotiations to lift the tariffs, China responded defiantly, stating it would implement countermeasures. Surprisingly, Canada was exempt but condemned the measures, indicating a readiness to retaliate. The implications of these new tariffs have reignited discussions reminiscent of the historical context of tariffs in U.S. policy, looking back to 19th-century protectionism that aimed to support domestic industry but also led to adverse global economic reactions. The ongoing evolution of U.S. trade policy under President Donald Trump marks a significant departure from previous administrations, adopting a more confrontational approach to international trade that promises to reshape the global economic landscape.