Global Trade War Intensifies: China and EU Strike Back at Trump's Tariffs
Source: news.source.rappler
In response to US President Donald Trump's imposition of steep tariffs, China and the European Union have retaliated with their own tariffs on US goods, escalating a global trade war. This move has led to significant market losses and increased fears of a global recession. The tariffs have affected various sectors, including pharmaceuticals and holiday ornaments, and have sparked mixed reactions in the US stock market. Trump remains defiant, suggesting the tariffs are a negotiation tactic, while opposition Democrats criticize the approach.
Key Points
China increased tariffs on US imports to 84% in response to Trump's 104% tariffs on Chinese goods.
The EU imposed 25% tariffs on a range of US imports as a countermeasure to US tariffs.
Global markets experienced significant losses, with oil prices dropping to four-year lows and investors selling off US Treasury bonds and the dollar.
JPMorgan Chase CEO Jamie Dimon warned that Trump's tariffs could lead to a recession.
Japan and Canada pledged to cooperate in stabilizing the global financial system.
Trump described the tariffs as 'permanent' but also suggested they were a negotiation tactic.
The US stock market showed mixed reactions, with the S&P 500 experiencing its deepest loss since the 1950s.
Economists predict increased costs for US households due to the tariffs, potentially affecting Trump's political standing.
Opposition Democrats criticized Trump's tariff strategy, with some suggesting a more targeted approach.
