CRU: 'Liberation Day' brings sweeping US tariffs

Donald Trump has announced major increases in tariffs on almost all US trading partners, with the exception of Mexico and Canada. Taken together with the tariffs already announced since he took office, around $2 trillion (60%) of US imports are now facing significantly higher tariffs, at an average rate of around 20%.

These tariffs have the potential to push up inflation by 2 percentage points to 4 percentage points in the US and will depress already slowing consumer spending. For trading partners, the tariffs will reduce demand for exports and depress growth. Over the coming days, trade partners will almost certainly announce retaliation, which will hit US exports.