Trump Implements New Tariffs Sparking Global Market Reactions
US tariffs on foreign cars and increased fees on Chinese imports trigger economic concerns across the globe.
On April 3, 2023, President Donald Trump implemented a 25% tariff on imported foreign cars, coinciding with widespread reactions across global markets and international governments.
The new tariff regime includes a 34% levy on all imports from China, marking a significant escalation in the ongoing trade conflict between the United States and China.
Following the announcement, major European stock markets, including Milan, Frankfurt, and Paris, experienced sharp declines, reflecting fears of an impending global recession.
The Milan Stock Exchange reported a 1.9% drop, with financial stocks and automotive firms experiencing significant losses.
Bper and UniCredit faced declines of 4.6% and 4% respectively, while Prysmian and Tenaris dropped by 3.9% and 3.8%.
The yield of Italian government bonds (Btp) rose to 3.75%, with the spread over German Bunds widening to 112 basis points.
Other European markets opened in deeply negative territory, with Frankfurt down by 2.4%, Paris by 2.15%, and London by 1.43%.
China's Ministry of Commerce condemned the US's unilateral tariff actions, labeling them as 'typical bullying' and asserted that China would take resolute countermeasures to protect its rights.
President Trump's tariff announcements add to existing tariffs, bringing the total levies on Chinese imports to 54%.
The Chinese government called for the immediate annulment of the tariffs and urged Washington to engage in dialogue with trade partners.
Japan's government responded similarly, expressing alarm over the new tariffs imposed on Japanese products, which will face a 24% tax.
Trade Minister Yoji Muto characterized the US's actions as 'extremely deplorable' and criticized the unilateral nature of the tariffs.
In response to the market shifts resulting from the tariff announcements, gold prices surged to a record high of approximately $3,167 before stabilizing at $3,132 per ounce.
In contrast, oil prices plunged, with Brent crude dropping to $74.14 per barrel, reflecting fears of a slowdown in global economic growth due to increased tariffs.
Ursula von der Leyen, President of the European Commission, criticized the tariffs, warning of their potential to cause severe consequences for millions globally, particularly vulnerable populations facing rising costs.
She stated that the uncertainty stemming from the tariffs could prompt more countries to turn to protectionist measures.
Von der Leyen indicated that while the EU is open to negotiating with the US, it is fully prepared to retaliate if necessary.
French President Emmanuel Macron convened a meeting with representatives from industries impacted by the US tariffs, signaling the seriousness with which his administration is treating the situation.
Meanwhile, major Asian markets, particularly Japan and Hong Kong, also saw significant declines in response to the US tariff announcements, causing widespread concern over sustained global economic stability.
In North America, Canadian Prime Minister Mark Carney emphasized that the new tariffs would fundamentally reshape global trade and expressed his commitment to combating the US measures.
Several Democratic leaders in the United States criticized Trump's tariff strategy, describing it as an undue tax burden on American families.
The ongoing developments indicate a complex and contentious trade landscape as nations respond to the evolving situation.
The new tariff regime includes a 34% levy on all imports from China, marking a significant escalation in the ongoing trade conflict between the United States and China.
Following the announcement, major European stock markets, including Milan, Frankfurt, and Paris, experienced sharp declines, reflecting fears of an impending global recession.
The Milan Stock Exchange reported a 1.9% drop, with financial stocks and automotive firms experiencing significant losses.
Bper and UniCredit faced declines of 4.6% and 4% respectively, while Prysmian and Tenaris dropped by 3.9% and 3.8%.
The yield of Italian government bonds (Btp) rose to 3.75%, with the spread over German Bunds widening to 112 basis points.
Other European markets opened in deeply negative territory, with Frankfurt down by 2.4%, Paris by 2.15%, and London by 1.43%.
China's Ministry of Commerce condemned the US's unilateral tariff actions, labeling them as 'typical bullying' and asserted that China would take resolute countermeasures to protect its rights.
President Trump's tariff announcements add to existing tariffs, bringing the total levies on Chinese imports to 54%.
The Chinese government called for the immediate annulment of the tariffs and urged Washington to engage in dialogue with trade partners.
Japan's government responded similarly, expressing alarm over the new tariffs imposed on Japanese products, which will face a 24% tax.
Trade Minister Yoji Muto characterized the US's actions as 'extremely deplorable' and criticized the unilateral nature of the tariffs.
In response to the market shifts resulting from the tariff announcements, gold prices surged to a record high of approximately $3,167 before stabilizing at $3,132 per ounce.
In contrast, oil prices plunged, with Brent crude dropping to $74.14 per barrel, reflecting fears of a slowdown in global economic growth due to increased tariffs.
Ursula von der Leyen, President of the European Commission, criticized the tariffs, warning of their potential to cause severe consequences for millions globally, particularly vulnerable populations facing rising costs.
She stated that the uncertainty stemming from the tariffs could prompt more countries to turn to protectionist measures.
Von der Leyen indicated that while the EU is open to negotiating with the US, it is fully prepared to retaliate if necessary.
French President Emmanuel Macron convened a meeting with representatives from industries impacted by the US tariffs, signaling the seriousness with which his administration is treating the situation.
Meanwhile, major Asian markets, particularly Japan and Hong Kong, also saw significant declines in response to the US tariff announcements, causing widespread concern over sustained global economic stability.
In North America, Canadian Prime Minister Mark Carney emphasized that the new tariffs would fundamentally reshape global trade and expressed his commitment to combating the US measures.
Several Democratic leaders in the United States criticized Trump's tariff strategy, describing it as an undue tax burden on American families.
The ongoing developments indicate a complex and contentious trade landscape as nations respond to the evolving situation.
Translation:
Translated by AI
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