U.S. President Donald Trump has unveiled a historic set of tariffs, including a 34% levy on Chinese imports and a 20% tax on European Union goods, marking a sharp escalation in global trade tensions.

Speaking from the Rose Garden, Trump declared a national economic emergency, justifying the tariffs as a means to boost domestic manufacturing and counter what he described as decades of economic exploitation.

"Our country has been looted, pillaged, raped, and plundered by other nations," he asserted. "Taxpayers have been ripped off for more than 50 years. But it is not going to happen anymore."

The sweeping tariffs—imposed without congressional approval under the 1977 International Emergency Powers Act—target dozens of nations with significant trade surpluses with the U.S. A 10% baseline import tax will also apply across the board, further disrupting global supply chains.

The new measures have already triggered a sharp sell-off in U.S. stock markets, as investors brace for an economic slowdown driven by higher prices on housing, automobiles, and clothing. Economists warn that these tariffs could usher in a new global recession, with Olu Sonola of Fitch Ratings noting that the average U.S. tariff rate will rise from 2.5% in 2024 to 22%.

"Many countries will likely end up in a recession," Sonola warned. "You can throw most forecasts out the door if this tariff rate stays on for an extended period of time."

Comparisons to the Great Depression

Critics argue that the move echoes the Smoot-Hawley Tariff Act of 1930, which exacerbated the Great Depression by sparking a global trade war. Scott Lincicome and Colin Grabow of the Cato Institute cautioned that the policy could have similarly disastrous consequences.

"With today’s announcement, U.S. tariffs will approach levels not seen since Smoot-Hawley, which incited a global trade war and deepened the Great Depression," they stated.

Global Backlash and Retaliatory Measures

Trump’s tariffs will affect key trading partners worldwide, except for Canada and Mexico, which will continue under existing USMCA tariffs. However, China faces a compounded tariff burden, as the 20% penalty for its role in fentanyl production will be added to the 34% general tariff.

The European Union and other affected nations are expected to respond with retaliatory tariffs, further escalating trade tensions. Trump, however, remains defiant, insisting that the new measures will generate hundreds of billions of dollars in revenue and restore fairness to global trade.

Despite warnings from Republican lawmakers, particularly those representing farm and border states, the White House has shown no signs of reconsidering its strategy.