Trump’s ‘Liberation Day’ tariffs were worse than expected—sparking a global selloff

• In the CEO today: Diane Brady on the new Trump taxes for international trade.
• The big story: The customs duties were worse than expected.
• Markets: Global sale is under implementation.
• Analyst notes From Wedbush, EyAnd financing financing on – guessed that – definitions and jobs and Timing.
• plus: All news and water chat from luck.

Good morning. A friend or an enemy? It was barely important yesterday that Donald Trump unveiled comprehensive targets against all trading partners in the United States. The main headlines numbers to know: 10 % basic tariffs on all imports, with a specific tariff and higher on some countries, including 34 % on China (the highest tariffs of 20 %), 20 % on the European Union and 46 % and 49 % on Vietnam and Cambodia respectively. “They are doing this to us, and we do it for them,” the president said during the tariff of Rose Garden, in which they reveal. Some foods to think with the start of repercussions:

It is worse than expected. It was also the White House Details are settled From the plan in the depth of Tuesday, the markets were showing some signs of life as investors were hoping for leniency at the last minute. But the stock futures took a diving after Wednesday’s announcement. Almost half of what Americans buy only in America Trade Department dataAnd industries such as the auto sector that have complex global supply chains.

This undermines China +1 strategy for manufacturers. Some Asian countries are especially hard beating Definitions by 40 % or moreDealing with a blow to American manufacturers to diversify production outside China to low -cost neighbors such as Vietnam, Bangladesh and Cambodia, especially in areas such as textiles and electronics. gap Inc. – Home to Gap, AlastaThe Republic of Banana and the old naval – has reduced its exposure to China in recent years, but still Sources of the vast majority of her clothes One of the Asian countries that have been severely struck from the new definitions. Change takes time.

Global reaction can harm all companies. Trump’s description yesterday’s tariff “Type” for commercial partners in America. Who is angry Foreign leaders For foreign consumers who boycott American products and travel, it is clear that our partners do not agree. Bad business, with Eye Economists, Goldman Sachs and Moodys Less growth prediction From the wounds of self -tariff. I spoke this week with Niccolo de Masi, CEO of IonQ Curtain Computing Company. He said, “We build all our purposes in America.” “We were not negatively affected by the definitions, but we are realistic that our ability to succeed in Asia and Europe comes with more existence there.” It is difficult to do this if the trade war provokes national instincts.

This can destroy difficult economies and industries. Jack Vanderreen, CEO of Antwerp Port Scrats, the second largest port in Europe, Tell my colleague Peter Vanham Earlier in this fall, “if Trump puts a tariff of up to 10 percent, we will deal.” Vandermeiren warned that Vandermeiren could spell disasters for steel and aluminum in Europe, cars and other industries directed towards export. The watch industry that struggles in Switzerland, which is Exporting more of its products to the United States more than any other countryIt will now face a huge tariff of 31 %. Will those who yearn for Rolex or Patek Philip have an alternative? i doubt it.

There will be a lot of negotiation in the coming days and business leaders know from the experience that what appears on paper in a press conference may not be translated into action on the borders – or it can be reversed quickly. American consumers, whose spending is more than two -thirds of GDP, does not seem enthusiastic about all these definitions that they were told will eventually help them. Consumer feelings Followed by Michigan University He was heading down this year to the lowest level since 2022.

Adam Smith once wrote that nations rarely flourish by their neighbors. It was in 1776, when it was a commercial dies and the United States. From British rule, the young nation used the customs tariff to develop local industries that later competed on the world stage. As we now return to the tariff levels that were last seen in the early twentieth century, where cars were just coming at the scene, the effect may be completely different.

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Call the executive daily via Diane Brady at Diane.brady@fortune.com

This story was originally shown on Fortune.com