President Donald Trump announced a list of tariffs on various countries on Wednesday, a move that is being perceived as a “severe blow” to several sectors. In Portugal, Economy Minister Pedro Reis acknowledged that this represents bad news, while the President of the European Central Bank, Christine Lagarde, stated that the tariffs will “destabilize the world of trade as we know it.”
The credit rating agency Fitch Ratings has warned that many countries are expected to fall into economic recession following Trump’s announcement of “reciprocal tariffs” on all imports.
The head of economic analysis for Fitch in the U.S. stated in a communiqué on Wednesday that the current U.S. tariffs on all imports now stand at 22%, compared to 2.5% in 2024. Olu Sonola pointed out that this rate was last seen around 1910, more than 100 years ago.
The credit rating agency Fitch Ratings has warned that many countries are expected to fall into economic recession following Trump’s announcement of “reciprocal tariffs” on all imports.
Lusa | 06:04 – 03/04/2025
From wines to automobiles, what are the expected impacts?
European wine companies face a “severe blow”
The European Committee of Wine Companies (CEEV) described the 20% tariff on European Union exports to the U.S. announced by Trump as a “severe blow,” predicting layoffs and deferred investments.
The trade association for the wine sector stated in a communiqué that this “severe blow to the wine trade” stems from European exports to the U.S. accounting for 28% of the total European Union wine export value in 2024, with the U.S. remaining the largest market for European wines, valued at €4.88 billion.
“The reciprocal tariffs announced for EU wines will severely harm European wine companies and create economic uncertainty, as well as layoffs, investment delays, and price increases,” stated the association’s president, Marzia Varvaglione. “Attacking EU wine will bring losses to both sides of the Atlantic”, she added.
“There is no alternative wine market that can compensate for the loss of the American market”, Varvaglione emphasized.
The Governor of the Bank of Portugal (BdP) warned today that the tariffs announced by the United States function as a tax and that the phase of retaliation will “increase economic costs”.
Lusa | 18:36 – 02/04/2025
Foreign automobiles not spared
Trump announced the imposition of “reciprocal tariffs” on imports, including 25% on all foreign automobiles.
“It won’t be full [reciprocity]… we could charge the full [tariffs applied by other countries]… we’ll charge half,” said Trump, who displayed a chart showing the levels of trade and non-trade barriers on American products in various countries and markets and what Washington will start charging from Thursday.
The 25% tariffs on foreign automobiles, significantly affecting EU countries, took effect at midnight, Trump announced in the White House garden, with numerous United States flags in the backdrop and in the presence of the Vice President and senior government members, including the Secretaries of State and Defense.
Tariffs are “friendly reciprocal” (says Trump)
According to the chart, China imposes tariffs of 67% on American products, and its products will now pay 34% to enter the United States; EU countries will pay 20% in tariffs, half of the estimated 39% for trade and non-trade barriers.
To access the American market, Japanese products will pay 24%, Indian 26%, Taiwanese 32%, and Vietnamese 46%. Meanwhile, the United Kingdom and Brazil will face 10%, equivalent to what is applied to American products, Trump added.
“We call this friendly reciprocal,” said Trump, emphasizing that he “would like” to apply “full reciprocity”.
The specific customs duties for each country or economic bloc, such as the EU, will start to be applied from April 9, according to White House officials.
The base tariff of 10% will be applied earlier, starting on Saturday, April 5, according to sources cited by EFE.
