The total amount of tariffs imposed on China by Trump since he took office has reached 54%. This time, he imposed a 34% reciprocal tariff on China. In response, China quickly retaliated. On April 4, China announced that from the 10th of this month, it would impose a 34% tariff on all imported goods originating from the United States, which is the same as the tariffs imposed by the United States on China. Almost at the same time, China’s Ministry of Commerce and other departments announced a number of sanctions against the United States, including adding 16 US entities to the export control list and implementing export controls on 7 types of medium and heavy rare earth items. China has used a strong force to counter Trump’s tariffs. Imposing a 34% tariff on the United States will hit US exports, and strengthening export controls on key rare earth resources will directly strangle the United States.1。
Trump's tariff policy has caused turmoil in the US stock market. On April 4, all three major US stock indexes plummeted, with the Nasdaq index falling 20% from its high and entering a bear market, and the S&P 500 index evaporating $5.4 trillion in two trading days, setting a historical record. Former US Treasury Secretary Larry Summers pointed out that last week's US stock market crash was the fourth largest two-day drop since World War II, second only to the 1987 stock market crash, the 2008 financial crisis and the COVID-19 pandemic.1。
American people are frantically buying goods from overseas due to Trump's tax increase policy, which has emptied the shelves. Because the policy may make these goods lose their competitiveness, companies will abandon the US market. In the future, people may only be able to buy them on the black market or second-hand platforms. Many scalpers have also appeared, which makes people very distressed. The risk of high inflation caused by tariffs is increasing. If prices continue to rise, people's lives will be affected.4。
Federal Reserve Chairman Powell publicly stated at a recent press conference that the United States is facing a highly uncertain outlook. The consequences of Trump's new tariffs may exceed expectations. The risk of rising unemployment and inflation will increase. The United States may fall into troublesome stagflation. The possibility of an economic recession is very high. The American people are very likely to face a very difficult time.1。
On the morning of April 7, Asia-Pacific stock markets fell sharply. Earlier, the Nikkei 225 Index and the Topix Index futures were suspended after hitting the limit down. The Korean Composite Index opened lower and the decline widened to 5.02%. South Korea urgently suspended the program trading sell orders in the KOSPI market. The three major A-share indices opened lower collectively. As of the midday close, the Shanghai Composite Index fell 6.34%, the Shenzhen Component Index fell 8.01%, and the ChiNext Index fell 9.74%.3。
On the 5th, Trump called on the public on social media, claiming that this is an economic revolution, and although it is not easy, we still have to hold on. Trump emphasized that the United States will win in the end and the result will be historic, trying to encourage the American people to endure the coming economic shock.1。
On March 26, local time, Trump signed an executive order at the White House, announcing a 25% tariff on all imported cars. The car tariffs will be permanent, and if the cars are manufactured in the United States, no tariffs will be paid. In addition, the United States will also impose tariffs on wood and drugs. The 25% tariff measure applies to imported passenger cars and light trucks, as well as key auto parts (engines, transmissions, powertrain parts and electrical components), and tariffs on other parts may be increased if necessary. Starting at 12:01 a.m. Eastern Daylight Time on April 3, 2025, a 25% tariff will be imposed on cars imported for consumption or extracted from warehouses for consumption; the 25% tariff on auto parts will be implemented no later than May 3, with a transition period of up to one month.