White House spokeswoman Karoline Leavitt confirmed that reciprocal tariffs on countries imposing duties on the US goods would take effect immediately after President Trump announces them.
Additionally, a 25 per cent tariff on auto imports is set to begin on April 3.
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Treasury Secretary Scott Bessent informed Republican House lawmakers that the reciprocal tariffs represent a “cap” for the highest US tariff level that countries will face.
The tariffs are set to affect a broad range of imports, including cars, steel, and aluminium.
President Trump said that the tariffs will be implemented “kindly” and will serve as a “rebirth” for the US economy.
The European Union has already indicated plans to impose counter-tariffs on US goods worth approximately $28 billion.
In response to these developments, global stock markets have experienced significant impacts.
The Nasdaq-100, S&P 500, and Dow Jones indices have all experienced significant declines, with investors concerned about the potential economic fallout from the tariffs.
Vice President of Federal Tax Policy at the Tax Foundation, Erica York said: “We’ve never seen anything like this. It’s unprecedented and radical.”
Australia has firmly resisted the White House’s latest trade demands, with Prime Minister Anthony Albanese stating that the government will not cave to the US pressure.
He confirmed that Australia is in “daily discussions” with Washington.
Opposition Leader Peter Dutton also expressed his willingness to stand up to the US, declaring he would not hesitate to confront Donald Trump or any other world leader if necessary.
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