Trump’s New Tariffs on Dozens of Countries

“`html

Trump’s Trade Offensive: Tariffs Soar, global Markets Reel as Trade War Looms

By Archyde News, April 9, 2025

The Escalating Trade War: A Complete Overview

The United States and China are teetering on the brink of a full-blown trade war as President Donald
Trump’s administration implemented a new wave of tariffs, impacting numerous economies worldwide.
These actions, initiated on Wednesday, April 9th, have sent shockwaves through global markets, raising
concerns about a potential recession and the long-term stability of international trade relations.

The latest tariffs, which took effect at 12:01 a.m. (0401 GMT), represent a meaningful escalation in
trade tensions. Tariffs on Chinese goods have reached a cumulative 104% as Trump’s return to the
White House. Furthermore, the tariffs extend beyond China, impacting key trading partners such as the
European Union (20%), india (26%), and Cambodia (49%).

These tariffs are not arbitrary. They are calculated using a formula that divides the trade-in-goods
deficit by twice the total value of imports. Though, this methodology has faced criticism from
economists who argue that it is indeed simplistic and fails to account for the complexities of global supply
chains and economic interdependence.

“President Trump has a spine of steel and he will not break,”

Karoline Leavitt,White House Press Secretary

Secretary Leavitt’s statement underscores the administration’s unwavering commitment to its trade
policies,despite the growing concerns and negative market reactions. The administration believes the
tariffs are necessary to protect American industries and jobs, and to address what they perceive as
unfair trade practices by other countries.

Market Turmoil and Global Reactions

The immediate impact of the tariffs has been evident in financial markets. U.S. stocks experienced a
fourth consecutive day of decline following the tariff declaration, with the S&P 500 index falling
below 5,000 for the first time in nearly a year. This decline reflects investor uncertainty and fears
of reduced corporate earnings as a result of higher import costs and potential disruptions to global
supply chains.

Asian markets also responded negatively, with Japan’s Nikkei index dropping more than 3% shortly after
the Wednesday open. The South Korean won weakened to a 16-year low, and markets in Hong Kong,
Shanghai, Sydney, Singapore, and Taipei all experienced declines exceeding 1%. These market reactions
highlight the interconnectedness of the global economy and the far-reaching consequences of trade
disputes.

In response to the tariffs, several governments have announced interventionist measures to stabilize
their economies.Taiwan, such as, pre-authorized emergency stabilization funds for its stock
exchange. South Korea unveiled a $2 billion emergency support package for its automotive sector,
including financial support, tax cuts, and subsidies. These measures demonstrate the willingness of
governments to take action to mitigate the negative impacts of the tariffs on their domestic
industries.

New Zealand’s central bank took the significant step of cutting interest rates, explicitly citing U.S.
tariffs as a factor weakening the global economic outlook.

While president Trump asserts that his policies will rejuvenate America’s manufacturing sector by
incentivizing companies to relocate to the united States, many economists and business leaders express
skepticism. They caution that the process of reshoring manufacturing is complex and time-consuming,
and that the tariffs could lead to higher inflation as import costs rise. For example, a recent study
by the Peterson Institute for International Economics estimates that the tariffs could increase
consumer prices in the U.S. by as much as 1.5% over the next year.

Impact of US tariffs – Key Indicators

Indicator	Impact
S&P 500	Fell below 5,000
Japan’s Nikkei	Down more than 3%
South Korean Won	16-year low
Consumer Prices (Potential)	Increase by 1.5%

Negotiations and the Path Forward

U.S. Treasury Secretary Scott Bessent remains optimistic that the tariffs will serve as leverage in
trade negotiations, stating that the new tariffs are at “maximum” levels, and expressed confidence that
negotiations will bring them down.

“I think you are going to see some very large countries with large trade deficits [with the US] come
forward very quickly,”

Scott Bessent, U.S. Treasury secretary

He anticipates that countries with significant trade deficits with the U.S. will soon offer proposals
to resolve the trade disputes.

President Trump has adopted a flexible stance on the tariffs, suggesting that they could be either
permanent or a catalyst for negotiations.

“Well, it can both be true,”

President Donald Trump

along with tariffs on goods, Trump has signaled his intention to impose “major” tariffs on
pharmaceutical imports, with the goal of incentivizing drug companies to relocate their manufacturing
operations to the U.S. This proposal has raised concerns about potential increases in drug prices for
American consumers, as well as the feasibility of rapidly shifting pharmaceutical production.

The administration has scheduled talks with South Korea and Japan, and Italian prime Minister Giorgia
Meloni is expected to visit next week, indicating a proactive approach to engaging with key trading
partners.

“These are tailored, highly tailored deals,”

President Donald Trump

Trump’s top trade official, Jamieson Greer, informed the Senate that Argentina, Vietnam, and Israel
are among the countries that have expressed willingness to reduce their tariffs. This suggests that
some countries are already taking steps to address U.S.concerns and de-escalate trade tensions.

China’s Response and Global Implications

The trade conflict initially escalated when trump unveiled a 34% additional tariff on Chinese goods.
China retaliated with its own 34% counter-tariff on American products,prompting Trump to vow an
additional 50% duty. This tit-for-tat cycle has fueled concerns about a prolonged and damaging trade
war.

Beijing has condemned the U.S. actions as blackmail and has vowed to “fight it to the end.” However,
Trump maintains that China “wants to make a deal, badly, but they don’t know how to get it started.”

the UK Chancellor, Rachel Reeves, has sought to reassure markets, stating that the Bank of England
believes “markets are functioning effectively and that our banking system is resilient.” the United
Kingdom are seeking to negotiate a new trade deal

What are the potential long-run effects of the trade tariffs on the US economy according to Dr.Vance?

Archyde News Interview: Analyzing the Economic Impact of Trump’s Trade Tariffs

Interview with Dr. Eleanor Vance,Senior Economist

archyde News: Welcome,Dr. Vance.The recent escalation of tariffs under the Trump administration has sent shockwaves through global markets. Can you give us a extensive overview of the potential economic consequences we should expect?

Dr. Vance: Thank you for having me. The immediate impact is clear: market volatility. We’re already seeing declines in major indexes, as highlighted in your article. But beyond that, we anticipate reduced long-run GDP by 0.2 percent due to these latest tariffs, along with a 0.1 percent reduction in the capital stock. Employment figures will also likely be affected, with estimates suggesting a reduction in the labor market.

Archyde News: The article mentions that the tariffs are calculated using a specific formula. How effective is this method in the current global trade surroundings?

Dr. Vance: The simplicity of the formula is a concern. Applying it without considering the complexities of global supply chains and widespread economic interdependence could lead to unintended consequences. The interconnected nature of global trade means that tariffs can disrupt more than just the targeted sectors, perhaps affecting businesses and consumers far beyond the initial target.

Archyde News: We see that other nations are taking preemtive measures to mitigate the effects of the tensions,such as South Korea’s emergency packages. How effective are these measures?

Dr. Vance: These efforts are,in my opinion,helpful. The reactions depend heavily on the specific situation and industry. While these interventionist measures from multiple countries are good at attempting to stabilize the economy, many of them face an uphill battle due to the economic uncertainty this type of event presents.

Archyde News: The administration stresses that the tariffs are meant to protect American jobs and industries.Do you see any potential benefits to the US economy from these actions?

Dr. Vance: The argument for protecting American jobs is definitely a key part of thier justification. while the administration’s goal is to incentivize companies to relocate to the United States to rejuvenate its manufacturing sector,it is a complex process.Whether it effectively works or not remains to be seen. Sadly, the overall impact is not that great, ther is a loss of 142,000 full-time equivalent jobs.We also see an increase in consumer prices.

Archyde News: The article mentions the possibility of further tariffs on pharmaceutical imports. What could be the ramifications of such a move?

Dr. Vance: Imposing tariffs on pharmaceuticals could indeed drive up drug prices, which could have a big impact on American consumers. Additionally, there is the challenge of how feasible it would be to rapidly shift pharmaceutical production to the U.S. Considering the complexities, it raises concerns about the potential for supply chain disruptions and increased costs for patients.

Archyde News: Looking ahead, what do you see as the most likely scenarios for how this trade situation will unfold?

Dr. Vance: The path forward is uncertain.The next steps may involve increased negotiations but at the end of 2024, the trade war tariffs have generated more than $264 billion of higher customs duties collected for the US. If these tariffs continue, the long run effects could be much more significant. I believe that will be the ultimate trajectory for the market.

Archyde News: Thank you, Dr. Vance, for sharing your insightful analysis. It’s clear that the situation is complex, and the coming months will be crucial in determining the real impact of these trade policies.

Dr. Vance: Thank you for having me.