Trump’s tariffs: A bold gambit with uncertain payoffs

On April 2, 2025, United States president Donald Trump unleashed his “Liberation Day” tariffs, a sweeping policy hitting all US imports with a 10 percent baseline tariff, plus “reciprocal” rates aimed at countries he accuses of taking advantage of America’s trade openness. This is Trump at full volume—a “historic reset” to “make America wealthy again,” punish perceived trade abusers, and fund either tax cuts or reduce the US$34 trillion national debt. One week in, markets are haemorrhaging, Malaysia’s leadership is rallying, and a global economy tethered to the US is on edge.

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