Trump signs a plan for reciprocal tariffs on US trading partners, ushering in economic uncertainty

Trump signs a plan for reciprocal tariffs on US trading partners, ushering in economic uncertainty
President Donald Trump speaks to reporters before signing an executive order as his aides watch at the White House in Washington on Feb. 13, 2025. (AP)
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Updated 14 February 2025
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Trump signs a plan for reciprocal tariffs on US trading partners, ushering in economic uncertainty

Trump signs a plan for reciprocal tariffs on US trading partners, ushering in economic uncertainty
  • Says the reciprocal tariff is “fair to all. No other country can complain,” adding that the new tariffs would equalize the ability of US and foreign manufacturers to compete
  • Analysts warned that the politics of tariffs could easily backfire on Trump if his agenda pushes up inflation and grinds down growth

WASHINGTON: President Donald Trump on Thursday rolled out his plan to increase US tariffs to match the tax rates that other countries charge on imports, possibly triggering a broader economic confrontation with allies and rivals alike as he hopes to eliminate any trade imbalances.
“I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” Trump said in the Oval Office at the proclamation signing. “It’s fair to all. No other country can complain.”
Trump’s Republican administration has insisted that its new tariffs would equalize the ability of US and foreign manufacturers to compete, though under current law these new taxes would likely be paid by American consumers and businesses either directly or in the form of higher prices.
The politics of tariffs could easily backfire on Trump if his agenda pushes up inflation and grinds down growth, making this a high stakes wager for a president eager to declare his authority over the US economy.
The tariff increases would be customized for each country with the partial goal of starting new trade negotiations. But other nations might also feel the need to respond with their own tariff increases on American goods. As a result, Trump may need to find ways to reassure consumers and businesses to counteract any uncertainty caused by his tariffs.
The United States does have low average tariffs, but Trump’s proclamation as written would seem designed to jack up taxes on imports, rather than pursue fairness as the United States also has regulatory restrictions that limit foreign products, said Scott Lincicome, a trade expert at the Cato Institute, a libertarian think tank.
“It will inevitably mean higher tariffs, and thus higher taxes for American consumers and manufacturers,” he said. Trump’s tariffs plan “reflects a fundamental misunderstanding of how the global economy works.”
Trump’s proclamation identifies value-added taxes — which are similar to sales taxes and common in the European Union — as a trade barrier to be included in any reciprocal tariff calculations. Other nations’ tariff rates, subsidies to industries, regulations and possible undervaluing of currencies would be among the factors the Trump administration would use to assess tariffs.
A senior White House official, who insisted on anonymity to preview the details on a call with reporters, said that the expected tariff revenues would separately help to balance the expected $1.9 trillion budget deficit. The official also said the reviews needed for the tariffs could be completed within a matter of weeks or a few months.
The possible tax increases on imports and exports could be large compared to the comparatively modest tariffs that Trump imposed during his first term. Trade in goods between Europe and the United States nearly totaled $1.3 trillion last year, with the United States exporting $267 billion less than it imports, according to the Census Bureau.
The president has openly antagonized multiple US trading partners over the past several weeks, levying tariff threats and inviting them to retaliate with import taxes of their own that could send the economy hurtling into a trade war.
Trump has put an additional 10 percent tariff on Chinese imports due to that country’s role in the production of the opioid fentanyl. He also has readied tariffs on Canada and Mexico, America’s two largest trading partners, that could take effect in March after being suspended for 30 days. On top of that, on Monday, he removed the exemptions from his 2018 steel and aluminum tariffs. And he’s mused about new tariffs on computer chips and pharmaceutical drugs.
But by Trump’s own admission, his separate tariffs for national security and other reasons would be on top of the reciprocal tariffs, meaning that the playing field would not necessarily be level.
In the case of the 25 percent steel and aluminum tariffs, “that’s over and above this,” Trump said. Autos, computer chips and pharmaceuticals would also be tariffed at higher rates than what his reciprocal plan charges, he said.
The EU, Canada and Mexico have countermeasures ready to inflict economic pain on the United States in response to Trump’s actions, while China has already taken retaliatory steps with its own tariffs on US energy, agricultural machinery and large-engine autos as well as an antitrust investigation of Google.
The White House has argued that charging the same import taxes as other countries do would improve the fairness of trade, potentially raising revenues for the US government while also enabling negotiations that could eventually improve trade.
But Trump is also making a political wager that voters can tolerate higher inflation levels. Price spikes in 2021 and 2022 severely weakened the popularity of then-President Joe Biden, with voters so frustrated by inflation eroding their buying power that they chose last year to put Trump back in the White House to address the problem. Inflation has risen since November’s election, with the government reporting on Wednesday that the consumer price index is running at an annual rate of 3 percent.
The Trump team has decried criticism of its tariffs even as it has acknowledged the likelihood of some financial pain. It says that the tariffs have to be weighed against the possible extension and expansion of Trump’s 2017 tax cuts as well as efforts to curb regulations and force savings through the spending freezes and staff reductions in billionaire adviser Elon Musk’s Department of Government Efficiency initiative.
But an obstacle to this approach might be the sequencing of the various policies and the possibilities of a wider trade conflict stifling investment and hiring amid the greater inflationary pressures.
Analysts at the bank Wells Fargo said in a Thursday report that the tariffs would likely hurt growth this year, just as the possibility of extended and expanded tax cuts could help growth recover in 2026.
Trump tried to minimize the likelihood that his policies would trigger anything more than a brief bump in inflation. But when asked if he would ask agencies to analyze the possible impact on prices, the president declined.
“There’s nothing to study,” Trump said. “It’s going to go well.”
 


Man who scaled London’s ‘Big Ben’ clock tower appears in court

Man who scaled London’s ‘Big Ben’ clock tower appears in court
Updated 32 sec ago
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Man who scaled London’s ‘Big Ben’ clock tower appears in court

Man who scaled London’s ‘Big Ben’ clock tower appears in court
LONDON: A man who climbed part way up the ‘Big Ben’ clock tower at London’s Palace of Westminster early on Saturday and stayed there all day as part of a pro-Palestinian protest, appeared in court on Monday.
Clutching a Palestinian flag, Daniel Day, 29, scaled 25 meters (82 feet) up the building, officially known as the Elizabeth Tower, at about 7:20 a.m. on Saturday, remaining there for 16 hours until agreeing to come down, his lawyer and prosecutors told London’s Westminster Magistrates’ Court.
He was subsequently charged by police with climbing and remaining on the tower which created “a risk or caused serious harm to the public,” and also trespassing on a protected site.
Prosecutors said Day’s actions had led to serious disruption in that area of central London with roads closed and buses diverted, and the cancelation of parliamentary tours had cost 25,000 pounds ($32,300).
Day’s lawyer said he would plead not guilty to the first charge, saying his action was designed to spread awareness regarding the situation in Gaza and Britain’s response to it.
The second charge of trespass requires the authorization of the attorney general, and so the case was adjourned until March 17 for a decision to be made.
Day, from a seaside town in eastern England, was remanded in custody, with his supporters clapping and shouting “Hero” and “Free Palestine” as he was led away.
Lindsay Hoyle, the speaker of parliament’s House of Commons, which is also located in the Palace of Westminster, said he had asked for a review of the incident.

Social media platform X outage appears to ease, Downdetector shows

Social media platform X outage appears to ease, Downdetector shows
Updated 26 min 34 sec ago
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Social media platform X outage appears to ease, Downdetector shows

Social media platform X outage appears to ease, Downdetector shows
  • Social media platform X was down for thousands of users in the US and the UK
  • There were over 16,000 incidents of people reporting issues with X as of 6:02am ET

Social media platform X is down for thousands of users in the US and the UK, according to outage tracking website Downdetector.com.
There were more than 16,000 incidents of people reporting issues with the platform as of 6:02 a.m. ET, according to Downdetector, which tracks outages by collating status reports from a number of sources.

X did not immediately respond to a Reuters request for comment.
Downdetector's numbers are based on user-submitted reports. The actual number of affected users may vary.


Tanker, cargo ship collide off UK coast causing blaze and casualties

Stena Immaculate tanker, involved in Monday’s collision with another ship off the coast of northeast England, can be seen.
Stena Immaculate tanker, involved in Monday’s collision with another ship off the coast of northeast England, can be seen.
Updated 40 min 58 sec ago
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Tanker, cargo ship collide off UK coast causing blaze and casualties

Stena Immaculate tanker, involved in Monday’s collision with another ship off the coast of northeast England, can be seen.
  • Thirty-two casualties have been brought ashore with ambulances waiting to take them to hospital in the port town of Grimsby
  • Vessels involved are the US-flagged chemical tanker Stena Immaculate and Portuguese-flagged container ship Solong

LONDON: A tanker and container ship collided off the northeastern coast of England on Monday causing a huge fire on at least one of the vessels and leading to numerous casualties.
Authorities mounted an emergency response, and the coast guard agency said a helicopter, fixed-wing aircraft, lifeboats and nearby vessels with fire-fighting capability had all been called to the incident to help.
Thirty-two casualties have been brought ashore with ambulances waiting to take them to hospital in the port town of Grimsby, the chief executive of the Port of Grimsby East said via email. It was not clear how severe their condition was.
The vessels involved are the US-flagged chemical tanker Stena Immaculate and the Portuguese-flagged container ship Solong, according to shipping industry sources.
The BBC cited the chief executive of Stena Bulk, Erik Hanell, as confirming that all the crew on the tanker had been accounted for.
Television images from the BBC showed at least one vessel ablaze with clouds of black smoke billowing into a grey sky.
The Royal National Lifeboat Institution (RNLI), a lifeboat service working on the emergency response, said: “There were reports that a number of people had abandoned the vessels following a collision and there were fires on both ships.”
The collision took place in a busy stretch of waterway with traffic running from the ports along Britain’s northeast coast to the Netherlands and Germany, shipping industry sources said.
Stena said its tanker was operated by US logistics group Crowley. The tanker was one of just 10 enlisted in a US government program designed to supply the armed forces with fuel.
Maritime analytics website Marine Traffic said the 183-meter-long Stena Immaculate was anchored off Immingham, northeast England, when it was struck by the 140-meter-long Solong, which was en route to Rotterdam.
Two shipping sources said the Stena Immaculate was at anchor at the time of the incident.
Ship insurer Skuld of Norway would only confirm that the Solong was covered with it for protection & indemnity, a segment of insurance that covers environmental damage and crew injuries or fatalities.
Solong’s manager, Hamburg-based Ernst Russ, did not immediately respond to a request for comment.
The United Nations shipping agency, the International Maritime Organization, said it was aware of the situation.


Marcos appoints new chief minister in Philippines’ only Muslim region

Marcos appoints new chief minister in Philippines’ only Muslim region
Updated 10 March 2025
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Marcos appoints new chief minister in Philippines’ only Muslim region

Marcos appoints new chief minister in Philippines’ only Muslim region
  • Abdulraof Macacua is the governor of Maguindanao del Norte and senior MILF leader
  • New leader appointed only 7 months before Bangsamoro’s first parliamentary elections

Manila: President Ferdinand Marcos Jr. has appointed a new interim chief minister to oversee the only Muslim-majority territory in the Philippines, as the region prepares for its first parliamentary elections in October.

Bangsamoro was at the heart of a four-decades-long separatist struggle until 2014, when the Philippine government struck a permanent ceasefire agreement with the Moro Islamic Liberation Front, paving the way for peace and autonomy in the region home to the biggest Muslim population in the predominantly Catholic country.

The Bangsamoro Autonomous Region in Muslim Mindanao was formed in 2019 as part of the region’s transition to autonomy, which will culminate in October this year, when it will elect its legislature and executive.

Until then, BARMM’s leadership is currently under a transition authority appointed by the Philippine president.

Marcos has appointed Abdulraof Macacua, the governor of Maguindanao del Norte — a province within the Bangsamoro region — to replace Murad Ebrahim, who had served as BARMM’s chief minister since 2019.

The change in leadership was confirmed on Sunday by Presidential Communications Office Undersecretary Claire Castro.

“This transition comes at a crucial time as the Bangsamoro region prepares for a significant milestone — its first parliamentary elections in October this year,” Presidential Peace Adviser Carlito G. Galvez, Jr. said in a statement on Monday.

“For the continuity and success of the Bangsamoro peace agreement, we place our trust in Interim Chief Minister Macacua as he takes the helm of governance.”

Macacua’s appointment was welcomed by Yshmael “Mang” I. Sali, the governor of Bangsamoro’s Tawi-Tawi province.

“We stand firmly behind the new leadership as we work together toward the goals of the Bangsamoro Government for the benefit of all its constituents,” Sali said.

Macacua, 67, has been a member of the Bangsamoro Transition Authority since 2019. Also known as Sammy Gambar, he was a senior MILF leader and had served as chief of staff of MILF’s armed wing.

Rikard Jalkebro, an expert on Muslim Mindanao and associate professor at the Anwar Gargash Diplomatic Academy in Abu Dhabi, said the “unexpected” change in BARMM’s leadership “carries significant political, governance and security” implications.

“It signals that (the palace) is not happy (or) confident that things are moving in the right direction,” Jalkebro told Arab News.

The last-minute leadership change may create uncertainties for ongoing governance programs, development initiatives and election preparations.

“Ebrahim was leading the BARMM transition with policies aligned with the peace process. Will Macacua continue these policies, or will he introduce new priorities that alter the region’s political and economic trajectory?” he said.

Though Macacua is also part of MILF, his appointment may also “indicate internal rifts within the organization,” according to Jalkebro.

As such, how the MILF and other Bangsamoro stakeholders react to the latest development in the coming months “will be critical” in determining “whether this shift strengthens or destabilizes” the transition process.

“The transition from a rebel movement to a formal political entity is delicate, and any perception of unfair political maneuvers could create tensions, particularly among grassroots MILF supporters,” Jalkebro said.

“The long-term effect will hinge on whether Macacua can maintain stability, ensure a fair election, and uphold BARMM’s autonomy without undue national government interference. This moment is a critical test for the future of Bangsamoro self-governance.”


US President Donald Trump ‘unpredictable’: Greenland PM

US President Donald Trump ‘unpredictable’: Greenland PM
Updated 10 March 2025
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US President Donald Trump ‘unpredictable’: Greenland PM

US President Donald Trump ‘unpredictable’: Greenland PM

NUUK: US President Donald Trump, who wants to take over Greenland, is very erratic, the island’s premier said on Monday, the eve of the self-governing Danish territory’s legislative elections.
“There is a world order that is faltering on many fronts — and a president of the United States who is very unpredictable — in such a way that makes people feel insecure,” Prime Minister Mute Egede told Danish public radio DR.
In a speech to the US Congress last week, Trump reiterated his designs, arguing the US needed the vast Arctic island for reasons of national and international security and saying he expected to get it “one way or the other.”
Determining a timeline for Greenland’s independence from Denmark has dominated the territory’s election campaign.
In a post addressing Greenlanders on his social media platform Truth Social late on Sunday, Trump said the US was “ready to INVEST BILLIONS OF DOLLARS to create new jobs and MAKE YOU RICH.”
“And, if you so choose, we welcome you to be a part of the Greatest Nation anywhere in the World, the United States of America!” he wrote.
Aaja Chemnitz — one of two Greenland representatives in the Danish parliament and a member of the prime minister’s left-green Inuit Ataqatigiit party — accused Trump of “inadmissible” election interference.
“It’s pretty desperate to make such a statement on the eve of an election in Greenland,” she said.
“As a foreign power, you’re not supposed to interfere.”

In his interview with DR, conducted before Trump published his latest post, Egede said the US president’s recent behavior had only served to push Greenlanders away.
“We deserve to be treated with respect and I don’t think the American president has done that lately since he took office,” Egede said.
“The recent things that the American president has done mean that you don’t want to get as close to (the US) as you might have wanted in the past,” he added.
In large part, Greenland’s economy is currently dependent on the fisheries sector and Danish subsidies. But Egede stressed it was already diversifying through tourism, mining and green energy generation.
He said he saw Greenland’s future as “within the Western alliance.”
“There are some security and defense policy issues where we need to ally ourselves with other countries with which we are already in alliance,” he said.
Egede said an independent Greenland in an alliance with Denmark and its other territory, the Faroe Islands, through a new, updated agreement “might be a possibility.”
The day after Trump’s speech to Congress, Egede wrote on Facebook that the 57,000 people of Greenland “don’t want to be Americans, or Danes either.”
“We are Greenlanders.”
“The Americans and their leader must understand that.”