President Donald Trump’s move to slap a 10 per cent tariff on most goods imported to the US, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth.

Full list: Trump’s tariffs on every country, including UAE, Saudi

The sweeping penalties announced against the serene backdrop of the White House Rose Garden on Wednesday immediately unleashed turbulence across world markets and drew condemnation from other leaders now facing the end of decades of trade liberalisation that have shaped the global order.

As Asia digested the news on Thursday, Japan’s Nikkei share index slumped to an eight-month low, with US and European stock futures also diving as investors scrambled to the safety of bonds and gold.

Tariffs faced by China

China, the world’s No 2 economy, faced with a fresh 34 per cent tariff on top of the 20 per cent Trump previously imposed, vowed countermeasures, seemingly taking little heed of a warning by US Treasury Chief Scott Bessent that such moves would lead to escalation.

Close allies like Japan and the European Union were not spared, facing 24 per cent and 20 per cent tariff rates respectively. The base 10 per cent tariffs go into effect on April 5 and the higher reciprocal rates on April 9.

EU chief Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

“The consequences will be dire for millions of people around the globe,” she said in a statement.

Reciprocal tariffs

The “reciprocal” tariffs, Trump said, were a response to duties and other non-tariff barriers put on US goods. He argued that the new levies will boost manufacturing jobs at home.

Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average American family by thousands of dollars.

Canada and Mexico, the two largest US trading partners, already face 25 per cent tariffs on many goods and will not face additional levies from Wednesday’s announcement.

Even some fellow Republicans have expressed concern about Trump’s aggressive trade policy.

Within hours of Wednesday’s announcement, the Senate voted 51-48 to approve legislation that would terminate Trump’s Canadian tariffs, with a handful of Republicans breaking with the president. Passage in the Republican-controlled US House of Representatives, however, was seen as unlikely.

Trump’s top economist, Stephen Miran, told Fox Business on Wednesday the tariffs would work out well for the US in the long run, even if they cause some initial disruption.

“Are there going to be short-term bumps as a result? Absolutely,” Miran, the chairman of Trump’s Council of Economic Advisors, told the network’s “Kudlow” programme.

Ending ‘De Minimis’

The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and “certain minerals that are not available in the US,” according to a White House fact sheet.

Following his remarks, Trump also signed an order to close a trade loophole used to ship low-value packages – those valued at $800 or less – duty-free from China, known as “de minimis”.

Trump is also planning other tariffs targeting semiconductors, pharmaceuticals, and potentially critical minerals, the official said.

Earlier in the day, the administration said a separate set of tariffs on auto imports that Trump announced last week will take effect starting on Thursday.

Trump previously imposed 25 per cent duties on steel and aluminum and extended them to nearly $150bn worth of downstream products.

Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.

US Representative Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, said he would introduce legislation to end the tariffs. Such a bill has little chance of passing the Republican-controlled Congress, however.

“Trump just hit Americans with the largest regressive tax hike in modern history – massive tariffs on all imports. His reckless policies are not only crashing markets, they will disproportionately hurt working families,” Meeks said.

US President Donald Trump has unveiled sweeping new tariff plans as part of what he calls ‘Liberation Day’ — and no country is spared.

Read more: Trump tariffs jolt Tokyo: Stocks on track for worst week in 5 years

The tariff regime, described by Trump as a “universal baseline tariff,” aims to set a flat 10 per cent import tax on all goods entering the US. However, this is just one part of a broader strategy: every country in the world would also face reciprocal tariffs from the US based on how they currently tax American goods.

Trump’s “America First” trade policy will see tariffs spike for countries such as Lesotho, with reciprocal tariffs from the US reaching as high as 50 per cent.

Interestingly, the White House has confirmed that Canadian and Mexican goods compliant with the US-Mexico-Canada Agreement (USMCA) will remain tariff-free. While new reciprocal tariffs won’t apply to Mexico and Canada, existing tariffs related to fentanyl will stay in place. USMCA-compliant goods will continue to face a 0 per cent tariff, while non-compliant goods will incur a 25 per cent tariff, and non-compliant energy and potash will face a 10 per cent tariff.

Amid this backdrop, Gulf countries such as the UAE and Saudi Arabia remain relatively unscathed in comparison, with both facing a 10 per cent reciprocal US tariff.

“Despite the US maintaining a trade surplus with all six GCC countries in 2024, Trump imposed a 10 per cent baseline import tariff on these nations, aligning with the tariffs they apply on US goods,” said Vijay Valecha, CIO at Century Financial.

“Last year, the US exported goods worth $27bn to the UAE, significantly exceeding the $7.5bn in imports from the UAE. This resulted in a $19.5bn surplus for the US, reflecting a 6.9 per cent increase from 2023. Additionally, the Value Added Tax (VAT) in GCC countries remains relatively low compared to the higher tax rates across Europe. Most GCC nations impose a 5 per cent VAT, with Saudi Arabia applying a higher rate of 15 per cent,” Valecha added.

Meanwhile, Hamza Dweik, head of trading and pricing (MENA) at Saxo Bank MENA, told Gulf Business that the new tariffs could even present an economic opportunity for the GCC.

“The GCC nations may need to explore new markets and strengthen trade ties with regions unaffected by these tariffs. Diversifying their economic base beyond oil exports will be crucial in mitigating the risks associated with external economic shocks,” said Dweik.

“While the tariffs present challenges, they also offer an opportunity for the GCC nations to accelerate their economic diversification efforts and strengthen regional trade partnerships. By proactively addressing these challenges, the GCC can continue to thrive in an evolving global trade landscape,” he added.

The full list, published below, details a country-by-country breakdown of the tariffs and the reciprocal rates:

Full list of Trump’s tariffs

*Including currency manipulation and trade barriers, according to White House. Source: White House

Dubai’s Roads and Transport Authority (RTA) has strengthened its push into autonomous mobility by forging new partnerships with global technology leaders, aiming to bring self-driving taxis to the emirate.

The initiative includes strategic agreements with Uber Technologies, WeRide and China’s Baidu through its Apollo Go unit — marking a major step in Dubai’s efforts to establish itself as a global leader in future mobility solutions.

The partnerships will see autonomous vehicles (AVs) deployed through Uber’s platform in Dubai, with WeRide spearheading the rollout. Baidu’s Apollo Go, one of the world’s foremost providers of autonomous ride-hailing services, will also commence operations as part of the agreement.

The initiative aligns with RTA’s broader Self-Driving Transport Strategy, which aims to transition 25 per cent of all journeys in Dubai to autonomous modes by 2030.

Autonomous transport: A step toward smarter cities

Mattar Al Tayer, director general and chairman of the Board of Executive Directors at RTA, said the agreements underscore Dubai’s ambition to integrate cutting-edge transportation solutions and enhance urban mobility.

“These partnerships represent a crucial step in advancing Dubai’s Self-Driving Transport Strategy,” Al Tayer said. “Since launching autonomous mobility trials in 2016, we have continuously expanded our initiatives. The deployment of autonomous taxis will significantly enhance first and last-mile connectivity for public transport users, in line with our broader First and Last-Mile Strategy.”

Al Tayer also highlighted the safety benefits of autonomous vehicles, noting that human error is responsible for over 90 per cent of traffic accidents. “This initiative will cater to a wide segment of the community, including senior citizens, residents, and people of determination,” he added.

Uber and WeRide will begin testing autonomous taxis in Dubai this year, with a safety driver present, before moving toward a fully driverless commercial launch in 2026.

Baidu and Uber expand footprint in Dubai

Baidu’s expansion into Dubai represents its most significant international move outside China, with Apollo Go having more than 150 million kilometres of safe autonomous driving to its credit.

“This ambitious partnership with RTA is a testament to Dubai’s commitment to innovation in mobility,” said Dr Wang Yunpeng, Baidu’s corporate VP and president of the Intelligent Driving Group. “We aim to deliver safe, sustainable, and efficient transportation solutions to global markets.”

Uber is also deepening its focus on autonomous mobility. “We’re thrilled to work with RTA to bring autonomous vehicles onto the Uber platform, starting with WeRide,” said Noah Zych, Uber’s global head of Autonomous Mobility and Delivery Operations. “This partnership reinforces our commitment to scaling self-driving technology worldwide.”

WeRide sees Dubai as a key market in its global strategy. “Dubai is a natural step forward in our Middle East expansion,” said Jennifer Li, chief financial officer and head of International Business at WeRide. “Our collaboration with Uber will accelerate the deployment of advanced autonomous mobility solutions.”

Apollo Go has been at the forefront of large-scale autonomous ride-hailing services, having recently launched fully driverless operations across multiple Chinese cities.

The company’s sixth-generation robotaxi, RT6, has been well received by passengers and is expected to play a significant role in the Dubai rollout.

India was slapped with a reciprocal tax by the United States on Wednesday, as President Donald Trump raised trade barriers on all goods entering America.

Below are some of the key points:

Tariff rate and comments on India

A flat 26 per cent tariff was imposed on all goods being exported by India to the United States, amidst reciprocal tariffs in the range of 10 per cent-49 per cent unveiled by Trump for other countries.

Read- Trump eyes visit to Saudi Arabia, UAE and Qatar next month

The United States imposes a 2.5 per cent tariff on passenger vehicle imports, while India imposes 70 per cent, the White House said in a statement. Apples are allowed to enter US duty free, but India imposes 50 per cent duty on US apples coming in to India, while rice attracts 2.7 per cent in US, in India it is at 80 per cent.

On networking switches and routers, the United States imposes a 0 per cent tariff, but India levies higher rates 10-20 per cent, the statement added.

The US has a trade deficit of $46 billion with India.

Which sectors may be hit the most?

Nearly $14 billion worth of electronics products and over $9bn worth of gems and jewellery are among the top sectors to be hit by the U.S. tariffs. While the 26 per cent tariff will not apply to auto parts and aluminium products, those will still attract the 25% tariff that Trump had announced earlier.

The White House said pharmaceutical products, which comprise nearly $9bn worth of exports from India as per government data, and energy products are exempt under the latest round of tariffs.

Washington’s previous sector-wide average tariffs on India for automobiles, gems and jewellery, chemicals and pharmaceuticals and electronic products stood at 1.05 per cent, 2.12 per cent, 1.06 per cent, and 0.41 per cent, respectively, as per Global Trade Research Initiative.

What tariffs will the other competing Asian nations face?

US has levied a 34 per cent reciprocal tax on China, Japan’s exports to US will attract 24 per cent, Thailand 36 per cent, Bangladesh 37 per cent, Malaysia 24 per cent, Taiwan at 32 per cent, South Korea at 25 per cent and Vietnam will attract 46 per cent – one of the highest.

Comment on non-tariff barriers

The White House statement said India imposes its own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India.

“If these barriers were removed, it is estimated that US exports would increase by at least $5.3bn annually,” it said.

Way ahead for India

During Prime Minister Narendra Modi’s US visit in February, the two nations agreed to start talks towards clinching an early trade deal and resolving their standoff on tariffs.

Reuters has reported that India is open to cutting tariffs substantially for over $23bn worth of US goods being sold to India.

With Trump charging a higher tariff on China, sectors where India can gain market share in shipments to US include textiles, apparel and footwear, according to an internal Indian government report reviewed by Reuters.

India sees an opportunity in raising exports of iron and steel products too, where it has manufacturing competence, “especially if tariffs on China are higher,” according to the report.

President Donald Trump‘s move to slap a 10 per cent tariff on most goods imported to the United States, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth.

The sweeping penalties announced against the serene backdrop of the White House Rose Garden on Wednesday immediately unleashed turbulence across world markets and drew condemnation from other leaders now facing the end of decades of trade liberalization that have shaped the global order.

As Asia digested the news on Thursday, Japan’s Nikkei share index slumped to an eight-month low, with US and European stock futures also diving as investors scrambled to the safety of bonds and gold.

China, the world’s No. 2 economy, faced with a fresh 34 per cent tariff on top of the 20 per cent Trump previously imposed, vowed countermeasures, seemingly taking little heed of a warning by US Treasury Chief Scott Bessent that such moves would lead to escalation.

Close allies like Japan and the European Union were not spared, facing 24 per cent and 20 per cent tariff rates respectively. The base 10 per cent tariffs go into effect on April 5 and the higher reciprocal rates on April 9.

EU chief Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

“The consequences will be dire for millions of people around the globe,” she said in a statement.

The “reciprocal” tariffs, Trump said, were a response to duties and other non-tariff barriers put on US goods. He argued that the new levies will boost manufacturing jobs at home.

Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average American family by thousands of dollars.

Canada and Mexico, the two largest US trading partners, already face 25 per cent tariffs on many goods and will not face additional levies from Wednesday’s announcement.

Concern from some Republicans

Even some fellow Republicans have expressed concern about Trump‘s aggressive trade policy.

Within hours of Wednesday’s announcement, the Senate voted 51-48 to approve legislation that would terminate Trump‘s Canadian tariffs, with a handful of Republicans breaking with the president. Passage in the Republican-controlled US House of Representatives, however, was seen as unlikely.

Trump‘s top economist, Stephen Miran, told Fox Business on Wednesday the tariffs would work out well for the US in the long run, even if they cause some initial disruption.

“Are there going to be short-term bumps as a result? Absolutely,” Miran, the chairman of Trump‘s Council of Economic Advisors, told the network’s “Kudlow” program.

The reciprocal tariffs do not apply to certain goods, including copper, pharmaceuticals, semiconductors, lumber, gold, energy and “certain minerals that are not available in the United States,” according to a White House fact sheet.

Following his remarks, Trump also signed an order to close a trade loophole used to ship low-value packages – those valued at $800 or less – duty-free from China, known as “de minimis.” The order covers goods from China and Hong Kong and will take effect on May 2, according to the White House, which said the move was intended to curb the flow of fentanyl into the U.S.

Chinese chemical makers are the top suppliers of raw materials purchased by Mexico’s cartels to produce the deadly drug, US anti-narcotics officials say. A Reuters investigation last year showed how traffickers often route these chemicals through the United States by exploiting the de minimis rule. China has repeatedly denied culpability.

Trump is also planning other tariffs targeting semiconductors, pharmaceuticals, and potentially critical minerals, the official said.

Earlier in the day, the administration said a separate set of tariffs on auto imports that Trump announced last week will take effect starting on Thursday.

Trump previously imposed 25 per cent duties on steel and aluminum and extended them to nearly $150bn worth of downstream products.

Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.

US Representative Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, said he would introduce legislation to end the tariffs. Such a bill has little chance of passing the Republican-controlled Congress, however.

“Trump just hit Americans with the largest regressive tax hike in modern history – massive tariffs on all imports. His reckless policies are not only crashing markets, they will disproportionately hurt working families,” Meeks said.