Global trade war fears spark as America imposes new tariffs
America has imposed sweeping new tariffs on global imports, prompting warnings from US Treasury Secretary Scott Bessent for countries to refrain from retaliating immediately. President Trump's new trade program has raised concerns about a potential global trade war, with Bessent urging nations to stay calm to prevent further escalation.
Trump's "Liberation Day" announcement triggers stock market plunge
Following President Trump's announcement of a baseline 10% tariff on all imports starting April 5, with higher rates for specific countries, stock markets experienced a significant drop in after-hours trading. The aim of the new tariffs is to address trade imbalances and ensure fair competition by matching the fees imposed on American goods by other countries.
EU threatens countermeasures against US tariffs
European leaders, including EU chief Ursula von der Leyen, have criticized the new tariffs as harmful to the world economy. The EU is reportedly preparing for potential countermeasures in response to the US tariffs, with countries like France, Italy, and Poland expressing concerns about the impact on their economies.
US plans to use tariff revenue to reduce taxes and national debt
President Trump stated that the revenue generated from the new tariffs will be used to lower taxes and pay off the national debt. The initial focus of the tariffs will be on auto imports, with a 25% tax on foreign-made automobiles set to take effect soon.
Despite backlash, US Treasury Secretary remains firm
Despite the criticism and threats of retaliation from other countries, Treasury Secretary Bessent emphasized the importance of avoiding a trade war. He warned that retaliatory tariffs could lead to further escalation and advised against rash decisions based on economic history.
For more updates on President Trump's tariffs and their impact, follow our blog for the latest developments.
