Key Takeaways:

• President Trump's new 10% tariff on imports has commenced, inciting fears of a global trade war.
• Multiple nations retaliate, with China set to impose a 34% tariff on US goods.
• The economic implications of these tariffs have already caused significant drops in global stock markets.

As of April 5, the United States has initiated a sweeping new tariff regime, with President Donald Trump's 10% tariff applied to a wide range of imports. This tariff marks a substantial shift in trade policy, with experts and global leaders warning that it may usher in a new era of international economic relations devoid of established rules and agreements. "This is the single biggest trade action of our lifetime," noted trade lawyer Kelly Ann Shaw, reflecting widespread concern about the long-term impact of these tariffs on global trade norms according to Reuters.

The repercussions of Trump's tariff plan have sent shockwaves through global markets, wiping out around $5 trillion in stock market value. Economic analysts foresee that the introduction of these tariffs could not only increase prices for consumers but potentially lead to recessions in major economies reported by Al Jazeera. Countries like Australia, Britain, and Argentina are among those already facing this unilateral 10% tariff, further complicating their trade relationships with the US.

In response to the tariffs, China announced its own set of 34% retaliatory tariffs on US goods, underlining the potential for a full-fledged trade war. President Trump declared over social media that "China played it wrong," positioning the US tariffs as a means of economic revival CBS News. This escalating tension has prompted fears of significant economic downturns as countries assess their options in retaliating or negotiating.

UK Prime Minister Keir Starmer remarked that the "world as we knew it has gone," emphasizing a shift towards a new world order dominated by deals and alliances rather than standardized regulations. He cautioned that these developments would have "profound" economic consequences and highlighted the urgent need for the UK to devise strategies to protect its industries in response to the tariffs according to the Bangkok Post.

Economists predict that the US tariffs could increase costs for American households and businesses, potentially leading to a drop in income growth and further fueling the risk of recession The Jakarta Post. As trade dynamics continue to evolve, world leaders remain on alert, evaluating their next moves in the ongoing trade standoff.

For more information on this developing story, visit Al Jazeera.