Trump's "reciprocal tariffs" trigger a global trade war, multiple countries announce countermeasures
On April 2, U.S. President Trump signed two executive orders, announcing a 10% minimum benchmark tariff on all trading partners, and implementing differentiated tariff rates on major economies such as China (34%), the European Union (20%), Japan (24%), South Korea (25%), and India (26%). The benchmark tariff rate (10%) will take effect at midnight on April 5, and the "reciprocal tariffs" will take effect at midnight on April 9.
The announcement of this policy immediately triggered a violent market reaction. U.S. stock futures plummeted, and many tech stocks suffered heavy losses after hours. Bitcoin was not spared either, briefly falling below $83,000 last night. Economists warned that the new tariffs could increase annual expenses for American households by thousands of dollars and may drive core CPI up to 3.5%.
In response to the U.S. tariff policies, multiple countries have already announced countermeasures. The European Union plans to impose tariffs on $26 billion worth of U.S. goods, including steel, aluminum, and agricultural products. Canada warned that if the U.S. implements "reciprocal tariffs," Canada will take retaliatory measures.
China has adjusted its soybean import structure to reduce dependence on the U.S., while emphasizing that "there are no winners in a trade war," suggesting that further countermeasures might be taken. Additionally, Brazil's Congress has quickly passed the "Economic Reciprocity Bill," authorizing the government to take retaliatory actions when trade interests are harmed.
Despite the Trump administration's insistence that the new tariff policy aims to "restore American manufacturing" and reduce the trade deficit, the general view in the business and economics community is that this move is more likely to raise inflation, disrupt supply chains, and ultimately be borne by American consumers. The National Retail Federation pointed out that the costs of tariffs will be directly passed on to consumers, affecting the operations of millions of businesses.
White House economic advisor Milan also acknowledged that it will bring short-term shocks to the global economy. Although Trump referred to April 2 as America's "Liberation Day," the reality may be another significant upheaval in the global trading system, with long-term impacts potentially exceeding expectations, even becoming a trigger for a new round of economic recession.
How long do you think this tariff war will last? Will global financial markets be affected and subsequently impact the cryptocurrency market?