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**WASHINGTON/BEIJING/BRUSSELS, April 3 (Reuters)** – President Donald Trump unveiled aggressive new trade barriers Wednesday, imposing a **10% baseline tariff** on most U.S. imports and **steep "reciprocal" tariffs** as high as **34% on China** and **20-24% on allies like the EU and Japan**, igniting fears of a full-blown global trade war. The announcement, made in the White House Rose Garden, sent shockwaves through financial markets: - **Asian stocks plunged**, with Japan’s Nikkei hitting an **8-month low** - U.S. and European futures tumbled as investors fled to **gold and bonds** - The **dollar weakened** amid stagflation concerns **"We’ve been looted by friends and foes for decades,"** Trump declared, framing the tariffs as a defense of American workers. But economists warn the measures could: - **Raise U.S. household costs by thousands yearly** - **Trigger global recession risks** - **Disrupt supply chains** already strained by geopolitical tensions **China** (facing 34% tariffs) promised **"resolute countermeasures"**, ignoring U.S. Treasury warnings against escalation. The **EU** condemned the move as **"a wrecking ball for the world economy"**, with President von der Leyen vowing retaliation if talks fail. **Key Dates:** - **10% baseline tariffs take effect April 5** - **Higher reciprocal rates (20-34%) begin April 9** *The Reuters Tariff Watch newsletter tracks these developments daily. [Sign up here]* --- **Why it matters:** The measures mark the **most dramatic U.S. trade escalation since the 1930s**, threatening to unwind decades of globalization. With **inflation still elevated**, analysts fear a **policy collision** between the Fed and Trump’s trade war. Trending news.update .fresh.
