President Donald Trump has announced plans for sweeping tariffs, saying the US “has been looted, pillaged, raped, plundered” by other nations.
Trump appeared at the White House for a “Liberation Day” ceremony where he announced the tariffs, including 25 per cent on all foreign-made automobiles.
“This is one of the most important days in my opinion in American history. It’s our declaration of economic independence,” he said.
“For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. But now it’s our turn to prosper.”
The sweeping duties would erect new barriers around the world’s largest consumer economy, reversing decades of trade liberalisation that have shaped the global order.
Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine.
Details of the tariffs were not immediately known as Trump continued remarks that echoed his longstanding complaints that U.S. workers and companies are hurt by global trade.
The uncertainty has rattled financial markets and businesses that have relied on trading arrangements that have been in place since 1947.
The new tariffs are due to take effect immediately after Trump announces them.
Trump has already imposed 20 per cent duties on all imports from China and 25 per cent duties on steel and aluminium and extended them to nearly $US150 billion ($A238 billion) worth of downstream products.
He has postponed a 25 per cent tariff on most Canadian and Mexican goods to pressure them to crack down on drug trafficking and immigration, though that is due to expire on Wednesday.
Administration officials have said that all of Trump’s tariffs stack atop prior rates.
His advisers say the tariffs will return strategically vital manufacturing capabilities to the United States.
Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars.
Businesses have complained that Trump’s barrage of threats has made it difficult to plan their operations.
“This is the most ridiculous thing I have ever seen,” Doug Ford, premier of the Canadian province of Ontario, said on CNBC.
Across sectors, from cars to ocean freight shipping, luxury goods and beyond, business leaders waited to see what would hit them.
Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.
Growing uncertainty over the duties is eroding investor, consumer and business confidence.
Global stocks retreated on Wednesday, while safe-haven gold held near record highs. US stocks have erased nearly $US5 ($A7.9) trillion of value since February.
With AP
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