World braces for price hike after tariff bombshell by Trump

President Donald Trump’s sweeping tariffs on US imports sparked threats of retaliation on Thursday, as companies and governments rushed to count the costs from an escalating trade war that threatens to shake up global alliances. The announced penalties unleashed turbulence across world markets and drew condemnation from other leaders facing the end of an era of trade liberalisation that has shaped the global order for decades. According to Fitch Ratings, the new US tariffs are the highest in more than a century. Imports to the world’s largest consumer market now face an average duty of 22.5pc, up from 2.5pc last year. Trump said he would impose a 10pc baseline tariff on all imports to the United States and higher targeted duties on some of the country’s biggest trading partners, hammering goods from Italian coffee and Japanese whisky to sportswear made in Asia. The president claims the “reciprocal” tariffs are a response to barriers put on US goods.