U.S. President Donald Trump announced a sweeping set of tariffs on Wednesday, imposing a baseline 10% duty on all imports while levying significantly higher rates on countries with which the U.S. runs trade deficits.
The move, described by Trump as a “declaration of economic independence,” aims to boost domestic production by countering what he calls unfair foreign competition. However, the policy has sparked backlash from major U.S. trading partners, raising concerns about a potential global trade war.
Sri Lanka faces a 44% tariff, making it the sixth hardest-hit country. The island nation currently exports 25% of its goods to the U.S., raising fears of economic repercussions. Other heavily impacted nations include Cambodia (49%), Vietnam (46%), and China (34%).
Financial markets reacted swiftly, with U.S. stock futures plunging amid concerns over rising inflation and slowed global trade. Meanwhile, international leaders have expressed dismay, warning that the tariffs could lead to higher consumer prices and economic uncertainty.
Despite criticism from economists and even some fellow Republicans, the Trump administration insists the policy will benefit American industries in the long run. However, retaliatory tariffs from affected countries could escalate tensions, further complicating global trade dynamics.
