Trump escalates trade war: these are the new announcements

Trump escalates trade war: these are the new announcements

President Donald Trump intensifies his great global trade war, which is guaranteed to have a negative impact on the wallet of the Americans and could plunge the US economy into a painful recession.

Explanation of the National Economic Residence

On Wednesday, Trump explained a national economic emergency and terminated at least 10% for all countries. For 60 countries classified as "worst sinner", the sentences are even higher, according to the officials of the White House.

high tariffs on goods from Cambodia, Vietnam and China

A particularly high duty rate of 49 % is raised to all imports from Cambodia, as a poster shows that Trump presented at an event in the rosengarten. The newly announced customs rates include 46 % for Vietnam, 34 % for China and 20 % for the European Union.

The increased customs set for China is charged in addition to the 20 % tariffs from Trump, which leads to an overall tune set of an incredible 54 %. Last year, the United States imported $ 439 billion from China, which makes China the second largest source of imports to Mexico.

New tax on packages from China

From May 2, the customs set of 54 % will also be applied to packages with a value of less than $ 800, which are sent from China and Hong Kong to the USA. This means that Americans who order goods from Chinese companies such as Aliexpress, Temu and Shein have to pay 54 % more.

economic effects and forecasts

Trump justified the tariffs with the argument that they would enable "growth" for the US economy. He repeatedly claimed that tariffs would help the US government rank less on income taxes. Economists, however, agree that the tariffs ultimately be paid by the country that imported the goods and, as a result, often lead to higher prices for consumers.

The current escalation of the trade war could further burden the relationships with US opponents and even more to loyal allies with which long-term trade relationships exist.

A look back at the trade strategy

Trump described the tariffs as "declaration of economic independence". In doing so, he said that jobs and factories would return to the United States "with full swing", and he already observed positive changes.

The universal customs rate of 10 % comes into force on April 5, while the tailor -made sentences come into force on April 9, which could leave the federal states with higher sentences than 10 % space for negotiations.

reactions of the markets and expert opinions

The stock markets fell according to Trump's announcement, the Dow lost 0.61 %, the S&P 1.69 %, while the technology -oriented Nasdaq Composite dropped by 2.54 %. Experts warn of the long -term consequences of these measures because they could promote stagflation - a situation in which inflation and economic growth decrease.

There is still no official threshold for stagflation, but economists often compare this situation with the 1970s and 1980s, when the unemployment rate was double digits and the inflation reached similar heights.

Stagflation could also affect other countries, according to the head of US economic research by Fitch Ratings, Olu Sonola, who said, "Many countries could probably get into a recession."

exception for Canada and Mexico

At the moment there is only an exception to the tariffs: goods from Canada and Mexico, which correspond to the contract for the United States, Canada and Mexico, are not subject to the new customs rates. This announcement also opens up new opportunities for countries to take advantage of American products with their own tariffs, which could further heat the tensions in the already broken trade war.

reactions to international trade tariffs

Despite the warnings of the finance minister Scott Bessent, many countries did not appeal to the economic consequences of the tariffs. Leading European and Asian politicians noticed that they are considering countermeasures against the new tariffs. The already fragile economic environment could be further destabilized by Trump's decisions.