Trump’s New Tariffs Shake Global Markets, Pushing Stocks into Decline
US President Donald Trump’s latest round of tariffs, including a striking 104% duty on Chinese goods, took effect on Wednesday, intensifying his ongoing trade war with numerous countries. These tariffs, part of Trump’s “reciprocal” trade strategy, have sent shockwaves through the global market, causing stock prices to plummet and stoking fears of a potential recession. The S&P 500 lost nearly $6 trillion in value in just four days, marking the worst drop since its inception, and is approaching a bear market, defined as a 20% decline from its peak.
Asian markets were particularly hard-hit, with Japan’s stock index falling more than 3%, and South Korea’s currency plunging to its lowest value in over 16 years. U.S. stocks also continued their downward trend, with investors bracing for a fifth consecutive day of losses. Despite the turmoil, Trump has suggested that these tariffs could serve as leverage in negotiations with other nations, stating that many countries are eager to strike new trade deals with the US, including China.
Trade discussions are already underway with key U.S. allies such as South Korea, Japan, and Italy, while Vietnam’s Deputy Prime Minister is scheduled to meet with Trump’s Treasury Secretary. However, these diplomatic talks have done little to assuage market concerns, with stock gains quickly fading and investors uncertain about the long-term impact of the tariffs. The tariffs, which affect a range of imports, are expected to raise prices on consumer goods, and economists warn that American shoppers will face higher costs.
Trump has made conflicting statements about the future of the tariffs, calling them “permanent” at one point while later hinting at potential adjustments. With China responding to the tariffs by implementing counter-tariffs of their own, the situation remains volatile. Trump’s administration has also suggested that more tariffs targeting other sectors, including pharmaceuticals, could be on the horizon, adding to global uncertainty.
Source: business day