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illuminem summarises for you the essential news of the day. Read the full piece on The Associated Press or enjoy below:
🗞️ Driving the news: President Donald Trump’s sweeping new “reciprocal” tariffs—ranging from 10% to 49%—took effect on April 2, triggering global concern, market volatility, and urgent diplomatic responses
• The tariffs target dozens of countries, including a 20% duty on European Union imports, which EU leaders called a “major blow” to the global economy
• While retaliation remains measured for now, pressure is mounting for negotiations to avert a broader trade conflict
🔭 The context: Trump claims the tariffs are intended to correct long-standing trade imbalances and bring manufacturing jobs back to the U.S.
• However, major economies including the EU, Japan, China, and South Korea warn of rising consumer costs and risks of recession
• The U.S. now has an average import tariff of 22%—its highest since around 1910—marking a sharp shift from decades of trade liberalisation
🌍 Why it matters for the planet: A breakdown in international trade cooperation threatens global climate collaboration, especially in green tech supply chains
• Tariffs on goods and retaliatory digital service taxes targeting U.S. tech giants could also slow innovation and clean energy investment
• Escalating trade tensions risk derailing economic stability vital to sustainable development
⏭️ What's next: The EU is preparing a response by late April, which may include taxing U.S. digital firms
• Countries like Japan, South Korea, and China are weighing their options, while New Zealand and Australia have ruled out retaliation to avoid inflationary impacts
• Analysts warn that if the tariffs remain in place long-term, global recession risks will rise sharply
💬 One quote: “This is a game changer, not only for the U.S. economy but for the global economy... You can throw most forecasts out the door,” — Olu Sonola, Head of U.S. Economic Research, Fitch Ratings
📈 One stat: The U.S. average tariff rate has jumped from 2.5% in 2024 to 22% in 2025, the highest since the early 20th century
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