Trump tariffs risks $700bn blow to global GDP, with U.S. hit most

Rising import costs to hit American corporate profits and consumer spending

Despite a likely hit to U.S. consumers, President Trump says his tariffs will help address unfair trade practices by other countries. © Reuters

RYOHEI YASOSHIMA

April 1, 2025 21:27 JST

WASHINGTON -- The reciprocal tariffs U.S. President Donald Trump is expected to announce on Wednesday could deal a heavy blow to the global economy if applied worldwide, estimates show, with the U.S. to be hit especially hard by pricier imports.

The duties, to be based on tariffs and other barriers imposed on the U.S. by each trading partner, will "start with all countries," Trump said Sunday. Prior to this, Commerce Secretary Howard Lutnick will deliver by Tuesday a report on the causes of U.S. trade deficits, which was ordered by Trump on his first day in office.