US President Donald Trump has Revealed His long-awaited “reciprocity” tariff plan has put financial markets in increasing fear of a global trade war.

On Wednesday, Trump announced a “minimum benchmark tariff” of nearly all imports to the United States at 10%. Shortly thereafter, higher tariffs on target countries will be phased out.

He claimed the new import tax was designed to reduce the trade deficit and bring foreign manufacturing back to the U.S. coast. He also said they will pave the way for future tax cuts.

Trump said “deprived” the United States when he targeted the global trade system tariff This immediately sparked strong opposition, with some of the largest U.S. trading partners promising countermeasures.

What was announced?

Trump cited the 1977 International Emergency Economic Powers Act to announce 10% tariffs on all countries, which is planned to come into effect on April 5.

Then, he revealed that there will be “Personalized” tariffs For countries with higher responsibilities for trade surpluses with or with U.S. imports. These tariffs will come into effect on April 9, four days later.

Trump explained that his team calculated “personalized” tariffs by seizing half of the fees claimed by the countries to accuse U.S. exports.

Therefore, the European Union will impose a 20% tariff, while the UK will impose a 10% tariff.

Meanwhile, China is designated 34% – except for the 20% tariff Trump has imposed on Chinese imports since he took office on January 20, Vietnam will be tariffed at a 46% rate, while Thailand will be 36%.

Mexico and Canada are the two largest trading partners of the United States and their direct neighbours, lost on the list, but they both already face 25% tariffs on exports to the United States, while all exports not covered by the U.S.-Mexico-Canada (USMCA) trade agreement.

According to the White House fact sheet, reciprocity tariffs will not apply to certain commodities such as copper, semiconductors, energy and “certain minerals not available in the United States.”

Mutual tariffs may also change. According to White House documents, tariffs may be negotiated with trade partners who “take important steps to correct non-rebirth trade arrangements.”

What did Trump say?

“For decades, our country has been plundered, plundered, raped and plundered by countries near the corner,” Trump told the audience of manufacturing workers, cabinet members and journalists.

“Foreign leaders stole our jobs. Foreign cheaters sacked our factories. Foreign scavengers have torn apart our once beautiful American dream.”

But he claimed Wednesday would mark a turning point in U.S. history, marking the end of a “vicious attack” he said the country was weathered.

“On April 2, 2025, the day when the American industry is reborn and the day when the fate of the United States is taken back will be remembered forever,” Trump said.

“We will charge them about half the charge – and have been charging us all the time. So the tariffs will not be completely reciprocal,” Trump said.

He added: “I think I could have done it, but for a lot of countries it will be hard. We don’t want to do that.”

What did the target country say in its response?

Within minutes of Trump’s announcement, world leaders began to condemn the harmfulness of tariffs.

China’s The ministry said in a statement that the ministry promised “to respond to our rights and interests” in response to “bullying.” Now, the U.S. tariffs on China are actually 54%.

Although Beijing no longer says this will implement a retaliatory countermeasure, the statement reads: “The United States has attracted so-called “mutual tariffs” based on subjective and unilateral assessments, which is inconsistent with international trade rules.”

It urged the Trump administration to remove tariffs and “correctly resolve differences with trading partners through equal dialogue.”

Once, Beijing and Taipei seem to be on the same page.

Taiwan Tag tariffs as “highly unreasonable”. Cabinet spokesman Michelle Lee said Taipei “deeply regrets” that Trump announced its export tax rate at 32%.

Australian Prime Minister Anthony Albanese said the tariffs were not “a friend’s behavior” and “completely unnecessary.”

European Commission President Ursula Von der Leyen responded to the EU’s new 20% tariff, calling the measure a “major blow to the world economy.”

“The consequences will be terrible for millions of people around the world,” she said, adding that groceries, transportation and medicines will be more expensive.

even Canadait is exempt from the latest tariffs.

Canadian Prime Minister Mark Carney During this crisis, we must act with purpose.” Write On social media. “My government will crack down on our tariffs,” he said.

Which countries will take their own measures to fight back?

Since reciprocity tariffs don’t start until April 9, countries have six days to try to reach an agreement with the Trump team. But some may respond with retaliatory tariffs.

Canada It is one of several U.S. trading partners that have pledged to respond to tariffs through retaliation measures.

at the same time, European Union French government spokesman Sophie Primas said it was “prepared for a trade war with the United States” and could “attack online services.”

She said the EU is preparing for a two-stage rebuttal and conducting it with a “preliminary reaction” and around mid-April, involving aluminum and steel.

Primas said the EU will then target “all products and services” and may take measures by the end of April, adding that this is still being discussed.

“China may release some kind of revenge…” Nick Marro, a leading economist in the intelligence department of economist, told Al Jazeera.

Which countries may prefer diplomacy?

MexicoAt the same time, there is disgust. On Wednesday, Mexican President Claudia Sheinbaum said she would avoid imposing “sell and sell” tariffs.

Similarly, British Prime Minister Keir Starmer ruled out immediate revenge and was expected to keep “keep cool heads in the days to come…” on Thursday.

Commerce Secretary Jonathan Reynolds told the House of Commons on Thursday that Westminster is holding talks with Washington to secure a deal aimed at avoiding or reducing UK tariffs.

Marrow said that in Asia, few countries are willing to accept Trump and risk further retaliation.

He said that apart from China, “many other Asian markets are unable to retaliate” because of “the importance of the United States as the ultimate demand.”

Dario Perkins, managing director of London-based financial research firm TS Lombard, agreed widely and said most countries would favor “other policy leverage” rather than retaliatory tariffs.

“I think the central bank will ease monetary policy (to increase growth by lowering interest rates),” Perkins told Al Jazeera.

Nevertheless, he said: “Global trade will be much weaker and international supply chains will be shortened. The multilateral era is dying.”

What is the market response?

From the United States to Asia, The market fell Investors have provided the biggest shift for the world’s largest economy since the 1930s.

The Dow Jones industrial average lost 2.6% on Wednesday, causing recent losses for U.S. companies.

Germany’s DAX index fell 1.7% on Thursday, while Paris’s CAC 40 fell 1.8%. FTSE 100 in the UK lost 1.2%.

In Asian trade, Tokyo’s Nikkei 225 index briefly fell 4% on Thursday, with automakers and banks taking a huge hit.

As global stocks fall, investors are eager to buy gold, a traditional safe haven asset during market volatility.

The precious metal hit a record high in Thursday’s ounce (28.3 grams) before the cuts increased.

Market participants are worried about the knock-knock effect of international supply chains, inflation and even recession, Especially in the United States.

Goldman Sachs recently raised its estimates of the likelihood of a U.S. recession in the next 12 months, up to 35%, up from 20%.

UBS Bank issued a note Thursday saying “It is reasonable for US Royal GDP (2025) to hurt 1.5-2%, and inflation could rise to nearly 5% if these tariffs are not lifted soon.”