Impact of Liberation Day on Global Trade Tariffs

This report outlines the significant changes in global trade tariffs following the events of Liberation Day on April 2, 2025. The document details the US's decision to impose a universal minimum tariff of 10% and additional tariffs on over 50 countries, resulting in an effective import tariff rate of 20.6%, the highest since the 1890s. It explains the repercussions for various countries, with China facing a staggering 59% tariff on its goods, while other countries like Vietnam and Thailand experience increases ranging from 18.5% to 40.4%. The report anticipates a recession in global trade, with expected export losses reaching USD440 billion in 2025. It also discusses the potential for bilateral deals that could lower tariffs to 11.8% by Q4 2025. The analysis includes projections for GDP growth, inflation rates, and the expected impact on different sectors, emphasizing the uncertainty and volatility in the global economic landscape due to these tariff changes.