The global economy is heavily strained as a result of the full-fledged trade conflict that began after President Trump placed high tariffs on these goods, leading to a foreign offset from the EU, China, and multiple other countries adding tariffs of their own, causing intense strife within the global economy.
European Union Member Responses: $23 Billion Import Tariff
European states infringe on the EU Import Tariff and Naval Blockade Aid with the intent of restricting goods to the aforementioned value of America’s 23 billion dollars. This is in retaliation for steel and aluminum, 25 percent trump taxes. Phase one is set to commence on April 15 and disburse over the 15th of May and the 1st of December. This shows magnitude against the ”EU Policy concerning Trump’s misguided and aggressive trade dispute with the Union” stance of the EU Commission.
Chinese Advancements: Striving Towards 84% Tariffs and Protective Movement On Travel
Beginning Thursday, China plans to advance its response by increasing the import tax on American goods to 84%. This direction accompanies a travel alert issued by the Chinese Council for People’s Diplomacy, calling for citizens to “protect themselves” when visiting the U.S. due to the growing hostility economically and regarding individual safety.
Stock Market Woes: Increased Unsteadiness of Currency Exchange Quivering With Bonds
The conflict raging between the two countries greatly amplifies the disparity between countries vendors, causing panic to set into the populace.
The initial hours of trading in the U.S. stock market have been relatively quiet; however, the same cannot be said for the S&P 500, which now seems to be bouncing up and down. The bond markets also seem to be under some strain after the yield rate on the 10-year Treasury surged, which will affect mortgage and loan rates for American households.
Pharmaceuticals Under Pressure: Trump’s Tariff Pledge
President Trump’s promises to impose tariffs on medications to promote local manufacturing have hurt the stock prices of pharmaceutical companies. As expected, Eli Lilly, along with other companies such as Pfizer, Merck, and Johnson & Johnson, has had its shares decline, with investors losing confidence in these medications with the strategic economic policies.
Global Condemnation: China Lashes Out at WTO Meeting
During a meeting for the World Trade Organization, China condemned the tariffs proposed by America, calling the Trump administration’s strategy ‘setting the world trade ablaze.’ A Chinese diplomat openly questioned and criticized the policies for imposing restrictions on freedom development on aspiring countries and their economic growth, especially the smaller economies.
Impact on Businesses: Walmart and Tata Steel Respond
With the never-ending uncertainty about the US-China trade war, businesses across multiple sectors have been impacted severely.
Walmart has tempered its fiscal first-quarter guidance, citing looming tariff considerations, while Tata Steel has publicly expressed intent to slash 20% of its employees in the Netherlands, citing geopolitical tensions alongside energy costs due to the recently imposed 25% tariff from the United States.
Global Reactions: France to Pakistan
Countries as diverse as France and Pakistan are now feeling the lingering effects of the ongoing trade war. French businesses are now asked to halt plans for investment in the United States, while Pakistan is dispatching a high-powered delegation to the United States to discuss the implications of imposed tariffs. In a visit to Vietnam, Spanish Prime Minister Pedro Sanchez did not shy away from declaring that “a trade war favors no one. We all will lose.”
A Widespread Economic Concern: Asia Market Freefall
Japan’s Nikkei 225, alongside most other regional indices, has plunged into severe losses, sustaining over 2.9% in a single day, making markets in Asia a target for the media’s blame. These proposed tariffs, as well as worries about their impact on international trade and supply chains, are weighing heavily on the sentiment of investors.
An Instantly Changing Place: Escalating Conflict and Unpredictability
The rate at which countries are retaliating is set to drastically change. The absence of a clear resolution in mind means the conflict will further intensify the ongoing global trade war. Countries such as China expressing promises to “fight to the end,” on the other hand, set the foundations for a more unstable economic environment.
