Tariffs from dozens of countries that came into effect on Wednesday, including 104% of goods from China, drastically increased a potential global trade war. The tariffs are held at 12:01 am ET.
The global economy has rocked the global economy since the weekend continued, following the 10% tariff imposed, with imports from exporters such as the EU or Japan further increasing at 12.01 a.m. (0401 GMT).
China – Washington’s largest economic rival, but also a major trading partner – is the hardest hit.
Mr Trump said Tuesday that his administration is conducting “tailored deals” with trading partners, and the White House said it would prioritize allies such as Japan and South Korea.
His top trade official, Jamieson Greer, told the Senate that Argentina, Vietnam and Israel were those willing to lower tariffs.
The president told a dinner with fellow Republicans Tuesday night that countries were eager to reach a deal.
But Beijing showed no sign of standing, vowing to “end” with the trade war and hoped to defend its own interests.
China’s retaliatory tariffs on 34% of U.S. goods will take effect on Thursday.
The president said his policy would restore lost manufacturing bases in the United States by forcing companies to move to the United States.
However, many business experts and economists question the speed at which this could happen, warning inflation to raise prices.
Trump said on Tuesday that the United States “collects nearly $2 billion a day” of tariffs.
He initially announced an additional 34% tariff on Chinese goods.
But Trump took up another 50% of the responsibility after China refuted its tariffs on the same amount of money for U.S. products.
Calculate existing levies implemented in February and March, which will increase the cumulative tariffs on Chinese goods during Trump’s second presidency to 104%.
Trump insists that the ball is in a Chinese court, saying Beijing “want to reach a deal but they don’t know how to start.”
Later on Tuesday, Trump also said the United States will announce major tariffs on drugs “soon.”
In addition, Canada said its tariffs on certain U.S. auto imports will take effect on Wednesday.
Asian markets opened again on Wednesday after erasing the value of global Boers’ equity in the final days, with Hong Kong falling more than 3% and Japan’s Nickelode down 2.7%.
The forex market also witnessed anger, as South Koreans won the dollar to its lowest level this week since 2009.
China’s maritime yuan also reached an all-time low against the dollar, as Beijing’s central bank moved to weaken the yuan on Wednesday, as Bloomberg said it was the fifth consecutive day.
Oil prices fell, with the West Texas Intermediate closing below $60 for the first time since April 2021.
The EU is trying to ease tensions, and group chief Ursula von der Leyen warned not to exacerbate trade conflicts in a call with Chinese Prime Minister Li Qiang.
EU readers said she emphasized stability to the world economy and “further escalation needs to be avoided.”
The Chinese Prime Minister told Von der Leyen that his country could survive the storm, saying “totally confident that he can sustain and healthy economic development.”
EU – Trump has faced severe criticism of his tariff regime – may announce a response it faces to a 20% tax.
In retaliation against the U.S. steel and aluminum tax that came into effect last month, the EU plans to tariffs on U.S. goods from soybeans to motorcycles as high as 25%, according to a document from AFP.
Wall Street’s main index closed Tuesday, with the broad S&P 500 falling 1.6%.
Among the public signs that tariffs have been shown, major Trump ally Ally Elon Musk described Peter Navarro, a senior White House trade adviser, as “better than a bag of bricks.”
