Trump's new global tariffs could backfire on the US economy

According to CNN, on April 2 (Washington time), President Donald Trump declared a national economic emergency and announced tariffs of at least 10% on all countries, and even higher tariffs on 60 countries considered "the worst offenders".

China is the hardest hit. It is the second-largest importer of goods to the US, after Mexico. China will now face a 54% tariff under the new policy. Beijing, along with the EU, Japan and South Korea, has threatened to impose retaliatory tariffs.

The US stock market as well as the European market fell sharply on the morning of April 3 following President Trump's decision to impose tariffs. This move by the US leader is seen as possibly escalating the growing trade war and disrupting the global economy.

The Business Roundtable, a group of top US CEOs, has warned that President Donald Trump's latest tariffs could backfire on the US economy.

“Broad-based tariffs of 10% to 50% risk inflicting significant harm on American manufacturers, workers, families, and exporters,” said Joshua Bolten, CEO of the Business Roundtable. “The damage to the U.S. economy would increase the longer the tariffs remain in place and could be exacerbated by retaliation.”

Bolten, also a former chief of staff to President George W. Bush, said the Business Roundtable supports Mr. Trump’s goal of “securing better and fairer trade deals,” including reducing tariffs on American goods.

Mr. Bolten said the group of CEOs urged the administration and top trading partners to “move quickly” to reach trade agreements that “eliminate these tariffs.”

“While negotiations are ongoing, we strongly encourage the administration to implement additional reasonable exemptions and provide a transparent, predictable exclusion process,” Bolten said.

The Business Roundtable's membership includes more than 200 CEOs of leading US companies, and its board of directors includes GM CEO Mary Barra, Apple CEO Tim Cook and JPMorgan Chase CEO Jamie Dimon.

The American Petroleum Institute, a trade group representing the oil and gas industry, issued a statement welcoming President Trump's decision to exclude oil and natural gas from the new tariffs.

Oil prices fell 3% on the evening of April 2 (Washington time) as investors worried that a sharp escalation in the trade war would damage the world economy.