Trump’s Reciprocal Tariffs Trigger Global Economic Shock

President Donald Trump’s controversial reciprocal Tariffs trigger global economic have now been enacted, sending shockwaves across. The tariffs raise levies on China this year to an unprecedented 104%, alongside import taxes on approximately 60 trading partners with trade surpluses with the US. This follows a baseline 10% tariff for most US trading partners, effective Saturday.

China Responds with Retaliatory Measures

In a swift response, China announced a significant increase in tariffs on US goods, raising them from 34% to 84%, effective April 10. The retaliatory move, confirmed at 7 p.m. Beijing time, marks a new phase in the escalating trade tensions between the two largest economies in the world.

Market Volatility and Global Reactions

Following China’s announcement, markets saw heightened volatility. US Treasuries experienced extended selloffs, with 30-year yields briefly surpassing 5%, while Asian and European markets fell. US futures also plunged, as the trade war rhetoric led to uncertainty. Despite an initial market rally linked to Trump’s comments on talks with South Korea, the optimism faded after the tariff confirmation.

Impact on Asian Nations and the European Union

Asian countries are feeling the greatest impact, with Cambodia facing a 49% tariff and Vietnam a 46% levy. Imports from the European Union will also be subject to a 20% tariff. This broad-reaching impact is igniting diplomatic efforts across the globe as countries seek to mitigate the financial strain.

Trump’s Declaration: A New Era for Trade

At a White House event, Trump declared that the tariffs signal a new chapter for global trade. “The money is flowing in at unprecedented levels. This is a great opportunity for us and for other countries,” he said, emphasizing the need to reshape international trade practices.

OpenAI Rejects Elon Musk’s $97.4 Billion Offer

The OpenAI board has decided to reject a $97.4 billion offer from Elon Musk and a group of investors to acquire the company’s assets…

Retaliation from Major Economic Powers

Other countries have already begun retaliating. Canada imposed a 25% counter-tariff on US auto imports, while France and Germany are pushing for a stronger response within the European Union. These developments suggest a prolonged and multifaceted trade conflict.

Domestic Criticism and International Negotiations

The tariff strategy has drawn criticism from Wall Street, economists, and even some members of Trump’s own party. Senator Thom Tillis questioned the long-term effectiveness of the tariffs. Meanwhile, international delegations, including those from Japan and South Korea, are preparing for negotiation talks with the US.

Trump’s Unyielding Approach

Despite the growing criticisms, Trump remains resolute in his approach. The administration has signaled that further actions, including new tariffs on pharmaceuticals and specific sectors like lumber and semiconductor chips, are forthcoming. Trump’s push for reciprocal tariffs aligns with his broader goal of reaffirming US economic dominance and securing political leverage.

“We’re going to win the midterm elections with a tremendous landslide,” Trump said, asserting that the tariffs will bolster the US economy and strengthen his political standing.