Trump Reshapes Trade With High Tariffs, Faces Backlash/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump’s sweeping new tariffs have sparked global retaliation, market volatility, and economic warnings. Business leaders fear recession, while countries like China and the EU respond with harsh countermeasures. Despite turmoil, Trump remains defiant, promising long-term benefits from his aggressive trade strategy.
Trump Tariff Backlash Quick Looks
- Global economy reacts strongly to Trump’s new tariffs
- Stock markets fall, bond yields rise amid uncertainty
- Trump imposes up to 104% tariffs on key allies
- Business leaders warn of recession and trade instability
- China, EU, Canada retaliate with steep tariffs of their own
- Trump signals more tariffs to come, including on drugs and tech
- Treasury Secretary predicts economic rebound in near future
- Administration faces uphill battle to stabilize trade environment
Trump Reshapes Trade With High Tariffs, Faces Backlash
Deep Look
Global Markets in Rebellion as Trump Enforces Aggressive Tariff Strategy
WASHINGTON, D.C. — April 9, 2025 — The global economy responded swiftly and forcefully to President Donald Trump’s latest round of sweeping tariffs, launching a wave of market turbulence, international retaliation, and warnings of a looming recession.
Shortly after midnight on Wednesday, a series of aggressive tariffs took effect, including a staggering 104% on Chinese imports, 20% on goods from the European Union, 24% on Japanese products, and 25% on South Korean exports. The Trump administration insisted these rates were open to negotiation, though Treasury officials admitted any talks could drag on for months.
While Trump touts these measures as part of a bold strategy to realign global trade in America’s favor, the fallout has been immediate and intense.
Market Volatility and Investor Unease
In normal times, signs of an economic downturn would lead investors to seek safety in U.S. Treasury bonds. But not this time. Bond prices dropped sharply, pushing the interest rate on the 10-year Treasury note up to 4.39%, signaling market discomfort with the president’s unpredictable trade policy.
Even as stock markets showed momentary signs of life early Wednesday, they dipped again shortly after opening, rattled by uncertainty surrounding global trade. Trump remained defiant, using his Truth Social platform to urge calm.
“THIS IS A GREAT TIME TO BUY!!!” he posted. “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
Business Leaders Sound the Alarm
Executives across major industries are growing increasingly uneasy. JPMorgan Chase CEO Jamie Dimon warned of a “probable” recession, pointing to the destabilizing effect of unilateral trade actions.
“Fixing these tariff and trade issues would be a good thing to do,” Dimon said on Fox Business Network.
“Trying to do it all at the same time has created chaos,” Bastian said on CNBC, noting that consumer demand for air travel has already begun to soften.
Experts Predict Recession
Economic analysts are now projecting that the country may enter a recession as early as this quarter. Joe Brusuelas, chief economist at RSM, cited simultaneous disruptions to consumer confidence, corporate investment, financial markets, and labor demand.
“These shocks are converging in a way that makes a downturn almost unavoidable,” Brusuelas said, adding that Trump’s policies have introduced “deep uncertainty” across key sectors of the economy.
Trade Partners Retaliate Swiftly
Foreign governments were quick to respond. China retaliated with 84% tariffs on U.S. imports, targeting agricultural and manufacturing products. Canada implemented matching 25% tariffs on U.S. auto exports, while the European Union authorized fresh taxes in response to U.S. steel and aluminum duties.
Trump’s trade war is escalating on multiple fronts, even as administration officials attempt to minimize the damage. Treasury Secretary Scott Bessent said the situation is fluid and that many countries are willing to negotiate.
“We’ve had an overwhelming response from nations who want to come to the table,” Bessent said, citing interest from Japan, South Korea, India, and Vietnam.
Still, the administration has not clarified whether its new baseline 10% tariffs on most countries will remain permanent.
Bessent predicted that the economy would “be back to firing on all cylinders” soon, though no concrete timeline was given.
Trump Doubles Down
Despite growing domestic and international pushback, Trump has made it clear that he’s not done yet. In a speech Tuesday night, he hinted at upcoming tariffs on copper, lumber, and semiconductors. He also suggested a tax on imported prescription drugs would be introduced in the near future.
By pushing ahead, Trump is betting that economic pain in the short term will lead to greater leverage and long-term gains. However, with financial markets shaky and U.S. trading partners retaliating in kind, the president faces one of the most significant economic tests of his administration.
Whether this gamble results in a stronger American economy or a global downturn remains to be seen — but one thing is clear: the world is not quietly accepting the new trade rules coming out of Washington.
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