Markets React as Trump Unveils Sweeping Tariffs
Trump Tariffs: The global economy was rocked on Thursday as President Donald Trump rolled out aggressive tariffs against virtually all U.S. trading partners, sparking market turmoil and growing concerns about an escalating trade war.
While American businesses brace for the economic fallout, foreign nations are threatening retaliatory measures, with China leading the charge.
Despite the backlash, the White House insists the policy is non-negotiable, urging Wall Street to trust Trump’s economic strategy.
China Hits Back with 34% Tariff on All U.S. Goods
Beijing wasted no time in responding to Trump’s “Liberation Day” tariffs. On Friday, China’s Tariff Commission announced it will impose a 34% tariff on all American goods, a dramatic escalation in the trade standoff.
“The U.S. practice is inconsistent with international trade rules, seriously damages China’s legitimate rights and interests, and is a typical unilateral bullying practice,” China’s Ministry of Commerce declared.
China had already faced a 20% tariff from Trump’s earlier policy, making the total taxation on Chinese exports to the U.S. a staggering 54%.
A Chinese Commerce Ministry spokesperson urged the U.S. to reconsider, warning that the tariffs could “endanger global economic development and the stability of the supply chain.”
Vice President JD Vance: “Stock Market Will Boom”
As U.S. markets plunged in response to the tariff war, Vice President JD Vance appeared on Newsmax, downplaying concerns and doubling down on the administration’s stance.
“We’re going to have a booming stock market for a long time because we’re reinvesting in the United States,” Vance claimed.
While acknowledging a “transition period”, Vance argued that tariffs will ultimately benefit American workers by forcing companies to invest in domestic production.
“Egg prices are lower, energy prices are lower, and you’ve got trillions of dollars of new investment coming into the country. People are building factories to avoid the tariffs.”
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Trump Tariffs: They are a Powerful Negotiation Tool – Including for TikTok
Despite insisting that the tariffs are not up for negotiation, Trump hinted that they could be used as leverage in diplomatic talks, including with China over TikTok.
“For instance… we have a situation with TikTok where China will probably say, ‘We’ll approve a deal, but will you do something on the tariff?’ The tariffs give us great power to negotiate,” Trump explained.
As the global trade war heats up, both U.S. and international markets remain on edge, with analysts warning of potential long-term consequences.
