Trump’s Zigzag Tariff Strategy Sparks Global Trade War Fears/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump’s unpredictable trade policies have thrown global markets and diplomatic relations into turmoil. His tariff rollercoaster has targeted allies and adversaries alike, sparking retaliatory measures from Europe and Canada while fueling fears of higher inflation and economic slowdown. The stock market has taken a hit, while industries scramble to adapt to Trump’s shifting demands—from a 200% tax threat on European wine to fluctuating duties on steel, aluminum, and farm goods.
Trump’s Trade War Quick Looks:
- Erratic Tariff Policies: Trump announces, pauses, doubles, and slashes tariffs, creating market uncertainty.
- Canada’s Anger: Heavy U.S. tariffs on Canadian imports have unified Canadians against Trump’s policies.
- Europe Hits Back: After Trump’s steel and aluminum tariffs, the EU slapped 50% tariffs on U.S. whiskey and textiles.
- Stock Market Impact: Markets tumble as businesses struggle to predict trade policy shifts.
- More to Come: New U.S. and EU tariffs are set to escalate in early April, prolonging economic uncertainty.
Trump’s Zigzag Tariff Strategy Sparks Global Trade War Fears
Deep Look:
Trump’s Trade Chaos Unsettles the Global Economy
In just a few weeks, Trump has:
- Announced tariffs on Canada, Mexico, China, and the European Union
- Paused and then reimposed certain tariffs
- Threatened a 200% tax on European wine and spirits
- Cited tariffs as a tool to fight fentanyl smuggling and illegal immigration
Canada’s Fury: Trade War Meets Sovereignty Battle
Trump’s trade war has sparked outrage in Canada, where his tariffs are seen as an attack on national sovereignty.
- Trump wants the U.S. to absorb Canada, a stance that has unified Canadians against him.
- Canadian Prime Minister Mark Carney has warned: “If they succeed, they will destroy our way of life.”
- Ontario threatened a 25% surcharge on U.S. electricity exports but backed down after Trump countered with a 50% tariff threat on Canadian steel and aluminum.
Canada’s Foreign Affairs Minister Mélanie Joly summed up the frustration:
“If the U.S. can do this to us, their closest friend, then nobody is safe.”
Trump’s Whiplash Tariff Strategy
Trump’s stop-and-start approach has been chaotic:
- Tariffs on Canadian and Mexican goods were announced, paused, imposed, and then adjusted.
- China faced a 10% tariff, which Trump then doubled to 20%, prompting China’s retaliatory 15% tariffs on U.S. farm goods.
- Europe retaliated with duties on U.S. textiles, peanut butter, jeans, and whiskey after Trump imposed new metal tariffs.
In response, Trump threatened a 200% tariff on European wine, spirits, and Champagne.
“We want toasts, not tariffs,” said Chris Swonger, CEO of the Distilled Spirits Council.
Stock Market & Consumer Confidence Decline
- Robert Halver, head of capital markets at Germany’s Baader Bank, warned: “His tariff policy is more erratic than April weather.”
- The stock market has dipped as businesses struggle to adjust to unpredictable trade policies.
- Consumers fear higher inflation, with tariffs expected to raise prices on essential goods.
What’s Next?
- New U.S. tariffs on Europe are set for early April, escalating tensions.
- Exemptions for key industries, including auto manufacturing, are set to expire, creating further economic uncertainty.
- Global trade partners are preparing countermeasures, potentially leading to a full-scale trade war.
With Trump’s erratic approach continuing, one thing is clear: March won’t be going out like a lamb.
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