1️⃣ Trump's tariffs: essence and initial consequences🤔
• What happened? Trump signed an order imposing a 10% tariff on imports from over 180 countries and territories. For specific countries, such as China and EU nations, even higher rates are planned — up to 49%. According to the president, the goal is to protect the American economy and respond to trade barriers from other countries.
• Immediate effect: Stock markets reacted with a sharp decline: futures on US stocks plummeted, and Asian exchanges opened with significant losses. Businesses reliant on imports are already forecasting price increases and reduced profits.
2️⃣ International reaction: the threat of a trade war
• European Union: The EU is preparing retaliatory tariffs on American goods worth up to $28 billion. French President Emmanuel Macron called for unity, stating, 'A trade war benefits no one.'
• China and Canada: China is imposing a 34% tariff on American products starting April 10, while Canada has already restricted the import of certain American cars. These actions indicate an escalation of conflict.
• Elon Musk's proposal: Trump's advisor and Tesla CEO Elon Musk advocated for 'zero tariffs' between the US and Europe, proposing a free trade zone. His position contrasts with the president's course.
3️⃣ Domestic politics: protests and division🙁
• Mass protests: Demonstrations against tariffs and other actions of the administration are taking place in cities across the United States. In Washington, Democratic Congressman Al Green announced the submission of articles of impeachment within 30 days.
• Congress's reaction: Some Republicans in the Senate support the idea of congressional control over tariffs, indicating a split in the party. Democrats, on the other hand, call the tariffs harmful to American consumers.
4️⃣ Economic consequences for Americans🥲
• Market decline: The crash of stock exchanges is already affecting citizens' pension savings and investments. Experts warn of the risk of recession if the trade conflict drags on.
• Business problems: Companies dependent on imports, such as Jaguar Land Rover, are suspending shipments to the US to assess losses. This could lead to rising prices and job cuts.
5️⃣ What's next?🫣
• Possible escalation: Without compromise, the world may face a global trade war that will impact the economies of the US and other countries.
• Internal pressure: Protests and calls for impeachment may force Trump to reconsider his policy, although he claims to be ready to go all the way.
• Forecasts: Stabilization is only possible with negotiations, but uncertainty prevails for now.
