President Donald Trump announced sweeping tariffs on US trading partners on Wednesday, as world leaders prepared to impose retaliatory actions, setting the stage for possible trade wars that could upend the global economy.
The minimum 10 per cent tariffs on all imports were established through an executive order on what Mr Trump called “Liberation Day”, an event attended by supporters at the White House's Rose Garden.
He said the action will be imposed on “friend and foe alike” because, “in many cases, the friend is worse than the foe in terms of trade”.
“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again,” Mr Trump said.
China and Vietnam were the targets of some of the harshest tariffs, at 34 per cent and 46 per cent. India will be hit with a 26 per cent tariff while the EU will receive a 20 per cent levy.
Pakistan (29 per cent) and Israel (17 per cent) were also on a list of more than a dozen countries hit by the reciprocal tariffs.
Mr Trump also announced a minimum baseline tariff of 10 per cent for remaining countries, with rates going even higher for countries deemed the “worst offenders”.
The baseline 10 per cent tariff will go into effect on April 5, a senior administration official told journalists, while the higher reciprocal rates would go into effect on April 9.
The President also bemoaned non-finance barriers, claiming those were more harmful to the US than monetary barriers.
“They manipulated their currency, subsidised their exports, stole our intellectual property, imposed exorbitant VAT taxes to disadvantage our products, adopted unfair rules and technical standards and created filthy pollution havens,” he said.
Mr Trump also announced a 25 per cent tariff on all foreign-made cars, which will go into effect at midnight on Wednesday.
“This is one of the most ambitious economic realignments the American people have ever seen,” a senior administration official said before Mr Trump's announcement. “The goal is to restore American greatness and prosperity for everyday American workers and their communities.”
After the announcement, Treasury Secretary Scott Bessent warned countries against responding with their own levies.
“I wouldn’t try to retaliate,” he told Bloomberg Television. “As long as you don’t retaliate, this is the high end of the number … As far as negotiations go, we’ll see.”
The Middle East has so far not been a focus of Mr Trump's tariff plans. Member states in the Gulf Co-operation Council apply a common external tariff of 5 per cent on most goods.
But in one exchange last month, Commerce Secretary Howard Lutnick accused Kuwait of not being thankful enough to the US after it had liberated the emirate from Iraq in 1991. Kuwait’s ambassador to the US, Sheikha Al Zain Al Sabah, met Mr Lutnick in Washington last week, assuring him that US taxpayers had no financial burden from the war to liberate Kuwait.
Countries in the region whose currencies are pegged to the US dollar could face stricter monetary policy, with the US Federal Reserve likely to keep interest rates elevated, which could also lead to smaller economic growth and investment.
Meanwhile, Mr Trump's aluminium and steel tariffs are expected to have a limited impact on Gulf exports.
Mr Trump has most of his tariff focus on America's three largest trading partners: Canada, Mexico and China. Together, they make up 38.7 per cent of total US trade, according to the Census Bureau.
However, those countries also make up a list of nations with whom the US has the highest goods trading deficits. At about $270 billion, the US has its largest goods trade deficit with China, followed by Mexico at $157.2 billion. Data from the US Commerce Department showed the US had a large trade deficit with the EU and India.
And in February, the US Trade Representative also listed a group of countries it is “particularly interested in” as part of a review on supposed unfair trading practices including Saudi Arabia, G20 countries and “economies that have the largest trade deficits in goods with the United States”.
While Mr Trump has argued his tariffs would improve US industrial competitiveness and reduce the nation's trade deficits, trading partners have responded by threatening to impose retaliatory tariffs of their own.
EU Commission President Ursula von der Leyen said the bloc has a strong plan to retaliate, while Canada and Mexico are preparing their own measures.
Match info
Australia 580
Pakistan 240 and 335
Result: Australia win by an innings and five runs
Copa del Rey
Barcelona v Real Madrid
Semi-final, first leg
Wednesday (midnight UAE)
The struggle is on for active managers
David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.
The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.
Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.
Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.
Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.
At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
RACE CARD
6.30pm: Al Maktoum Challenge Round-3 – Group 1 (PA) $65,000 (Dirt) 2,000m
7.05pm: Handicap (TB) $65,000 (Turf) 1,800m
7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m
8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m
8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m
9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
SPECS
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THE BIO:
Sabri Razouk, 74
Athlete and fitness trainer
Married, father of six
Favourite exercise: Bench press
Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn
Power drink: A glass of yoghurt
Role model: Any good man
Wallabies
Updated team: 15-Israel Folau, 14-Dane Haylett-Petty, 13-Reece Hodge, 12-Matt Toomua, 11-Marika Koroibete, 10-Kurtley Beale, 9-Will Genia, 8-Pete Samu, 7-Michael Hooper (captain), 6-Lukhan Tui, 5-Adam Coleman, 4-Rory Arnold, 3-Allan Alaalatoa, 2-Tatafu Polota-Nau, 1-Scott Sio.
Replacements: 16-Folau Faingaa, 17-Tom Robertson, 18-Taniela Tupou, 19-Izack Rodda, 20-Ned Hanigan, 21-Joe Powell, 22-Bernard Foley, 23-Jack Maddocks.
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
