Trump’s Tariffs Shake Global Economy, Spur Negotiation Push/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump’s sweeping new tariffs sparked global backlash and market turmoil. While nations like China and EU members condemned the move and hinted at retaliation, many leaders called for renewed trade talks to avoid a wider economic downturn.
Trump’s Tariff Shock – Quick Looks
- Massive Tariff Imposition: New import taxes range from 10% to 49%.
- Targeted Nations: China, EU, Japan, South Korea face stiff penalties.
- China Accuses U.S. of ‘Bullying’: Calls for return to trade negotiations.
- Macron Urges Investment Freeze: Tells French firms to pause U.S. projects.
- EU Readies Response: Eyes tech companies like Apple, Amazon for retaliation.
- Markets Tank Globally: U.S., Europe, Asia see steep sell-offs.
- Economic Warning Signs: Fitch warns global recession is now likely.
- Trump Defends Move: Claims tariffs will restore U.S. manufacturing base.
Trump’s Tariffs Shake Global Economy, Spur Negotiation Push
Deep Look
Global Markets Recoil as Trump Tariffs Trigger Economic Shock and Outcry
President Donald Trump’s aggressive new tariffs unleashed a storm of global reaction on Thursday, sparking warnings from world leaders, threats of retaliation from major economies, and deep concern from economists as markets across continents tumbled in response.
The tariffs — ranging from 10% to 49% — apply to a wide swath of imports and have stunned governments and industries alike, with many calling for urgent negotiations to roll them back before they do further damage.
“Taxpayers have been ripped off for more than 50 years,” Trump said. “But it is not going to happen anymore.”
Trump’s plan places especially heavy tariffs on major U.S. trading partners: 34% on Chinese goods, 20% on European Union products, 24% on Japanese imports, and 25% on South Korean exports.
China, EU, France Respond with Alarm
China’s Foreign Ministry condemned the U.S. move, describing it as “unilateral bullying” and urging a return to trade negotiations. Spokesperson Guo Jiakun emphasized that protectionism “is not a way out,” warning that more countries would soon oppose the U.S.’s behavior.
In Europe, leaders expressed outrage but stopped short of immediate retaliation.
European Commission President Ursula von der Leyen said the tariffs were a “major blow to the world economy” but reaffirmed the EU’s willingness to negotiate.
French President Emmanuel Macron went further, calling on businesses to halt U.S. investments until the matter is resolved.
“Why would European players invest billions in the U.S. while being hit like this?” Macron asked during a meeting with executives from major industries, including cosmetics, food, metals, and aviation.
The U.K. and Japan struck a more cautious tone, signaling concern while refraining from direct countermeasures.
British Prime Minister Keir Starmer urged “cool and calm heads,” warning that no one wins in a trade war. Japan’s Cabinet Secretary said Tokyo would analyze the situation before taking action.
EU Considers Targeting U.S. Tech Sector
While the EU has so far limited retaliation to symbolic goods like bourbon and motorcycles, analysts say the next phase could target U.S. tech giants such as Google, Apple, Meta, Amazon, and Microsoft, where the U.S. runs a large export surplus.
A digital services tax is likely part of the EU’s forthcoming response, with French officials already lobbying for tougher digital regulations as a counterstrike.
Germany’s outgoing Chancellor Olaf Scholz declared the EU must “show strong muscles” but stressed that negotiations remain preferable.
“The best outcome is a deal that protects prosperity in both Europe and the U.S.,” Scholz said.
Economic Fallout Already Mounting
Global stock markets plunged in the hours after Trump’s announcement:
- The S&P 500 dropped 3.7%,
- The STOXX Europe 600 index fell 2.7%,
- Tokyo’s Nikkei 225 slid 2.8%,
- Oil prices dropped more than $2 per barrel,
- Gold and bonds briefly spiked before sliding.
“This is a game-changer,” said Olu Sonola, head of U.S. economic research at Fitch Ratings. “Many countries will likely end up in recession. You can throw most forecasts out the window if this sticks.”
Economist Stephen Innes called the policy rollout “full-throttle macro disruption,” while Deutsche Bank warned that average U.S. tariffs have now reached 25% to 30% — the highest level since the early 20th century.
Consumers Likely to Pay the Price
Though Trump insists the tariffs will bring jobs back to America, economists caution that U.S. companies and consumers will absorb most of the costs — either through higher prices or reduced availability of goods.
Italian cheese producers, for instance, noted that Parmigiano Reggiano sales are unlikely to slow.
“Americans continued to choose us even when prices rose during 2019’s tariffs,” said Nicola Bertinelli, president of the Parmigiano Reggiano Consortium.
He warned the new levies would “only increase prices for American families without protecting U.S. producers.”
Even Tiny Norfolk Island Hit
One of the most puzzling impacts of Trump’s blanket tariff rollout was a 29% tariff on goods from Norfolk Island, a small Australian territory with 2,000 residents that does not export anything to the U.S..
“We’re scratching our heads,” said local administrator George Plant. “To our knowledge, we don’t charge tariffs, we don’t export anything. We’re baffled.”
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