In a speech that sought to portray the wealthiest country in the world as a victim of the global system of trade it created, Donald Trump proclaimed “liberation day” on Wednesday as he announced sweeping tariffs on all imports into the United States.
Precisely who was being saved, and from what, was unclear. If the initial market reaction is anything to go by, many Americans may soon be liberated from their retirement savings.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said, likening the U.S. trade deficit to the Mongols’ sacking of Baghdad.
The much-anticipated announcement, billed as a day to “Make America Wealthy Again,” was the culmination of a months-long cat-and-mouse game the president had played with the global economy.
Economists have called it a gamble that could raise prices, cause job cuts, and start a global trade war. Trump insisted in his speech that “jobs and factories will come roaring back into our country” as he announced 10 per cent tariffs on all imports.
“It’s our declaration of economic independence,” Trump said at the event, promising a “golden age” for the United States.
In a surreal scene, the president took on a role akin to a game show host as he grappled with a giant cardboard chart detailing the tariffs that would be imposed on each country, adding commentary for each as he went down the list.
“You know, you think of the European Union, very friendly, they rip us off. It’s so sad to see. It’s so pathetic,” he said as he announced 20 per cent tariffs on all imports from the bloc.
“Vietnam. Great negotiators, great people. They like me. I like them. The problem is they charge us 90 per cent – we’re going to charge them a 46 per cent tariff,” he went on.
“Japan, very, very tough, great people,” he continued. “And again, I don’t blame the people for doing it. I think they’re very smart. I blame the people that sat right at that Oval Office, right over there, right behind the Resolute Desk, whichever desk they chose.”
No country or territory escaped the gaze of Trump’s new economic order.
The uninhabited Heard and McDonald Islands, an Australian territory in the sub-Antarctic Indian Ocean, were hit by a 10 per cent tariff on all their exports.
It is unclear what impact that will have on the penguins that live there.
That paled in comparison to the levy on the Falkland Islands, a British territory with a population of 3,200 in the South Atlantic, which was inexplicably hit by 41 per cent tariffs on its exports to the United States. Americans may soon be expected to pay more for their mollusks, which are the islands’ top export.
It is said that a president’s words can move markets; it is likely for that reason that the White House moved the event to take place after they had closed.
Nonetheless, after-hours trading gave a hint of what may come on Thursday morning. Dow futures tumbled 256 points, or 0.61 per cent. S&P 500 futures slid 1.69 per cent. Futures tied to the Nasdaq 100 fell 2.54 per cent.