President Donald Trump announced the implementation of extensive new tariffs, effective April 5, 2025. These include a baseline 10% tariff on all imports into the United States, with significantly higher rates for key trading partners: 34% on China, 20% on the European Union, 26% on India, and 46% on Vietnam.
The administration justifies these tariffs as measures to boost federal revenue by $6 trillion and repatriate manufacturing jobs. However, critics argue that these dual objectives are inherently contradictory. Economists and industry groups warn that the tariffs could push the U.S. into a recession, raise unemployment to 7.3% by 2027, reduce market confidence, and cost households an average of $3,400.
In response, the European Union is preparing countermeasures, including retaliatory tariffs targeting up to €26 billion ($28.4 billion) in U.S. goods. European Commission President Ursula von der Leyen criticised the U.S. move as a major threat to the global economy and emphasised the EU’s willingness to negotiate reforms.
The oil and gas industry appears relatively insulated from these tariffs, as U.S. energy imports such as oil, gas, and refined products have been exempt. This exemption benefits domestic refiners and provides market stability, despite initial volatility in crude prices.
Overall, these sweeping tariffs have escalated global trade tensions, with potential for significant economic instability and prolonged conflict unless policy revisions are made.
