Trump’s New Tariffs Trigger Global Trade Turmoil: News Summary \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump’s sweeping tariff increases have ignited a global trade war, crashing major stock indexes and drawing international backlash. China and other nations are launching retaliatory measures, while markets reel and companies halt U.S. shipments. World leaders are calling for de-escalation as economic uncertainty grows.
Quick Looks
- Trump’s sweeping tariff hike sparks global trade war, triggering a steep sell-off in U.S. markets
- S&P 500, Dow, and Nasdaq all plunge more than 5% in response
- China retaliates with a 34% tax on all U.S. imports starting next week
- Trump defends tariffs as part of an “economic revolution” to restore U.S. dominance
- Elon Musk advocates for a zero-tariff trade zone between the U.S. and Europe
- France and UK leaders call for de-escalation, warn trade wars harm all economies
- Jaguar Land Rover pauses U.S. shipments due to a 25% vehicle import tax
- Taiwan announces a $2.65 billion relief fund for industries impacted by tariffs
- China slams U.S. tariffs as “economic bullying” and vows firm countermeasures
- Trump claims China is being hit harder, markets react with steep losses
Deep Look
The international economic order was rocked this week after President Donald Trump announced a sweeping hike in tariffs on imported goods—triggering an escalating global trade war and sending major U.S. stock indexes into a tailspin. The S&P 500 fell by 6%, the Dow Jones Industrial Average dropped 5.5%, and the Nasdaq composite plummeted 5.8% in a sharp market reaction to rising trade tensions.
The new tariffs, which Trump insists will boost American industry and bring trillions of dollars in investment back to the U.S., have drawn widespread criticism and triggered swift retaliation from other nations.
China Responds with Major Tariff Countermeasures
China, the U.S.’s largest trading partner and longtime adversary in the trade dispute, announced on Friday that it would impose a 34% tax on all U.S. imports, effective next week. The measure is part of a broader strategy to counter Trump’s aggressive new tariffs and sends a clear message that China is not backing down.
A statement released by China’s Foreign Ministry went further, accusing the U.S. of abusing tariffs to pursue private interests and calling the moves “economic bullying.” The government emphasized that China would not escalate unnecessarily but vowed to take “firm measures” to protect its sovereignty and economic interests.
China’s Xinhua News Agency carried a bold message on Saturday: “The world needs justice, not tyranny.”
Musk Pushes for Tariff-Free Future with Europe
Elon Musk, CEO of Tesla, SpaceX, and social media platform X, weighed in on Saturday via video conference during Italy’s League Party congress. Speaking to Italy’s Deputy Prime Minister Matteo Salvini, Musk expressed hope for a “zero-tariff zone” between Europe and the United States, suggesting that free trade would benefit both regions in the long run.
]Musk, who now serves as head of the newly formed Department of Government Efficiency, is seen as a key adviser in the Trump administration’s reshaping of federal operations. His comments may signal internal debate within the administration over the long-term consequences of protectionist policies.
U.S. Tariffs Begin to Take Effect
The baseline 10% tariff announced by Trump took effect early Saturday morning, with customs officials across the country beginning enforcement. A second wave of tariffs, including extreme levies as high as 50% on imports from Lesotho, 49% on Cambodia, and 47% on Madagascar, are set to take effect on Wednesday.
Trump, posting on Truth Social, defended the policy in his signature tone:
“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN.”
However, the plummeting stock market and backlash from U.S. allies suggest growing skepticism.
World Leaders Call for Calm Amid Economic Fallout
European leaders have begun diplomatic efforts to prevent the trade conflict from spiraling further. On Saturday, U.K. Prime Minister Keir Starmer and French President Emmanuel Macron held a phone call to discuss the consequences of the U.S. tariffs. They agreed that a trade war benefits no one, particularly as global economies are still recovering from pandemic disruptions and inflationary pressures.
“Nothing should be off the table,” the leaders noted, adding that governments must keep businesses informed and take a coordinated, measured approach.
Italy’s Economy Minister Giancarlo Giorgetti also expressed concern, warning against retaliatory tariffs that could hurt Europe. Speaking at a business forum near Milan, he urged a “pragmatic and rational approach” and emphasized Italy’s limited budgetary space given its high public debt.
Corporate Fallout: Jaguar, Land Rover Pause Shipments to U.S.
One of the first major corporate reactions came from Jaguar Land Rover, which announced a pause in U.S. shipments due to the 25% import tax on vehicles. The British automaker said it was taking “short-term actions” to adapt to the new tariffs while developing mid- to long-term strategies.
“The U.S. is a key market for JLR’s luxury brands,” the company said in a statement. British automakers are already grappling with weak domestic demand and a costly transition to electric vehicles, and Trump’s tariffs could exacerbate the challenges.
China Trolls Trump Administration Amid Market Plunge
China’s Foreign Ministry spokesperson Guo Jiakun used social media to highlight U.S. market declines, posting a screenshot of Friday’s drops in the Dow, S&P 500, and Nasdaq with the caption: “The market has spoken.”
Guo criticized the U.S. tariffs as “unprovoked and unjustified” and called for equal-footed negotiation rather than threats. “Now is the time for the U.S. to stop doing the wrong things,” he wrote, adding fuel to a growing war of words between Washington and Beijing.
Taiwan Announces $2.65 Billion in Industry Relief
Taiwan, another U.S. trading partner facing steep new tariffs, announced a $2.65 billion relief fund to support industries expected to be hit hardest — particularly electronics, steel, machinery, and agriculture.
Taiwanese Premier Cho Jung-tai said the government would also engage directly with Washington to challenge the 32% tariff rate imposed on its exports and attempt to renegotiate trade terms. He warned of “significant impacts” across several sectors, including moth orchids, tilapia, edamame, and auto parts.
Taiwan’s strong trade surplus with the U.S. has made it a target under Trump’s new policy, despite its longstanding status as a key tech supplier and ally.
Trump Claims U.S. Will Prevail in Global Showdown
Back in the U.S., Trump remained defiant as he spent the weekend at his Jupiter, Florida golf course. Wearing his signature MAGA hat, he posted from the course, claiming China has been “hit much harder than the USA” by the tariffs and that the U.S. would no longer be “the dumb and helpless whipping post.”
Despite the confident tone, economists warn that escalating tariffs could deepen global inflation, trigger supply chain disruptions, and erode consumer confidence in the coming months.
Final Thoughts
Trump’s tariff blitz has thrown the global economy into uncertainty, prompting market crashes, diplomatic frictions, and corporate countermeasures. While supporters hail it as a move to reclaim U.S. industrial strength, critics say it risks triggering recession-like conditions both domestically and abroad.
With retaliatory responses from China, Taiwan, and Europe already underway, and key allies warning against a full-scale trade war, the world now watches to see whether economic brinkmanship or negotiation will prevail in the weeks ahead.
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