Duties: The global impact, the dip in the shares, retaliation after Trump announcements

One and a half days has passed after Donald Trump’s announcements for their duties which has imposed on most of the US trade partners.

As long as the hours pass, the more are growing in retaliation Against the US

The impact on the global economy was visible from the first hours, and the fall on the stock markets continues for a second day.

The announcement day was named by the US President « Day of Liberation », with Trump signing an executive decree imposing a single duty of 10% on almost all states.

Trump then announced additional duties to those countries that the US accuse them of imposing higher burdens on US products.

The White House Post in X:

Liberation Day Reciprocal Tariffs pic.twitter.com/odckbuwkvo

– The White House (@WhiteHouse) April 2, 2025

Trump’s duties shocked world markets and criticized world leaders.

The 10% single duty comes into force on April 5, and the same will happen for additional links from April 9.

China and the European Union have already responded with retaliation, which marks the risk of a world trade war, as the Al Jazeera.

The Chinese Ministry of Commerce initially called on Washington to cancel duties.

« There is no winner in a trade war and there is no way out for protectionism, » the Chinese ministry said in a statement.

However, then, at noon on Friday, Beijing went on the counter, imposing additional 34%US duties in the US.

Mutual duties for allies and opponents

Trump has targeted about 60 countries with mutual duties.

These are countries that have stood out as those that impose higher contributions on US products, according to the US government.

The stricter contributors apply to both large US and smaller economies – and allies and opponents.

For China, the duty reaches 54%, including the 20%charges already imposed, the lesone faces a 50%duty, the Cambodia 49%and the neighboring Vietnam 46%.

« The increase in duties was more aggressive than expected, » Lynn Song, chief economist for China and the wider area at the Dutch Bank ING, told Al Jazeera.

« Many waited for a 10-20%duty range. This kind of aggressive movement will probably risk some retaliation from the biggest players, although smaller countries could choose to try to negotiate for a lower percentage, « he said.

For the EU the duty is 20%.

Basic 10% duties have been applied to all imports arriving in the US. Some countries facing 10% duties are the United Kingdom, Australia, Singapore, Brazil and the United Arab Emirates.

There will be no additional duties on Canada and Mexico – both countries are already subject to 25%duties, except for products covered by a free trade agreement with the US.

Duties by country:

Source: White House

Source: White House

Which countries export the most in the US

In 2024, Mexico exported $ 505.9 billion to the US, according to the US International Trade Office.

It was followed by China, which exported $ 438.9 billion, Canada $ 412.7 billion, Germany $ 160.4 billion and Japan $ 148.2 billion.

Source: Al Jazeera

Which countries will be most affected

Although Trump did not impose additional duties on Canada or Mexico, these countries are the most likely to be affected by US contributions, given the high percentage of their exports directed to the US.

In 2023, 77.6% of Canada’s total exports headed to the US, according to UN Comtrade data. Mexico’s total exports to the US were 79.6%.

On the contrary, while the US is the largest export destination of the European Union, the EU sees many other countries buying its products: in 2023, in the US it headed less than 20% of EU exports, according to Comtrade.

Similarly, while heavy duty is applied to Chinese products, only 14.8% of Chinese exports were directed to the US in 2023.

Thus, while the US was China’s largest export market that year, the huge portfolio of other China export destinations – including Japan, Germany, India and Mexico – means it can be less affected by Canada or Mexico.

However, duties could affect the way China approaches future trade with the US, according to experts.

« The escalation of duties and the continuation of unilateral measures could deepen the erosion of confidence in the global trade system, pushing China to further differentiate its partners and reduce its US market dependence, » he said to Al Jazeera, Trade and China.

Which countries are directing most of their exports to the US. Source: Al Jazeera

How will consumers be affected in the US

In 2023, the US introduced goods worth $ 3 trillion – about $ 1 trillion more than they exported.

US consumers are already facing higher car prices after 25% of Trump imposed on all cars and car spare parts entering the US, which came into force on Wednesday, April 2.

Since duties also apply to car spare parts, cars manufactured in the US using imported spare parts will become more expensive, AJ points out.

« The increased costs could cause significant disruption throughout the supply chain and, perhaps, most importantly, could lead to significant increases in prices for vehicles for US consumers, » the Detroit Regional Chamber of Commerce and Michauto and Michauto.

On Thursday, New Zealand Prime Minister Christopher Luxon said about the 10% duties imposed on his country: « This ends up leading to higher prices for US consumers, higher inflation, slows growth and, as a result, exerts real pressure to the world. »

Source: In