The first wave has announced today (5/4/2025) the first wave announced by almost all imported products, escalating tensions in the field of international trade and sparking reactions from their main commercial partners.
Specifically, on April 5, the general duty has been implemented 10% while the “compensatory tariffs” will be activated on April 9.
With this move, which he called “a day of liberation”, Trump attempts to pay back to countries that, according to him, have exploited the US while at the same time announcing that he would impose “compensatory tariffs” on dozens of countries, charging additional duties to any countries he blames.
US economists and trade partners are questioning the methodology by which the White House calculated the supposed tariff “burdens” imposed by other countries on US exports. Experts continue to discuss the breadth and nature of the consequences that the measure may have – both for the US and the global trade system.
Collapsed the stock markets
The announcement has sparked strong reactions, with the Asian and European stock markets recording major losses in Thursday and Friday co -orders and with the wave of concern spreading in international markets.
The pan -European index Stoxx 600after a 2.57%decline yesterday, a new dive yesterday of 4.4%yesterday, with the banking industry leading the way down 10%, after -5.53%on Thursday. Strong pressures are also accepted by the Retail Branch and mainly the branch of the industry luxury which records 5.2%, marking its worst performance over almost four years.
“Dip” over 7% and 5% respectively were also recorded by maritime giant shares Maersk and Table-loygdconsidered barometers for the health of the global economy, amid fears that duties will hit global trade.
The index Euro stoxx 50With the “heavy” eurozone’s “heavy” papers, it also made strong losses of more than 4.2%.
The individual stock markets were also found in a free fall. In Germany, the index DAX fired 4%, in France the CAC 40 fell by 3.8%, while in Britain the FTSE 100 It slid by 3.84%.
Much stronger were pressures in the European region, with the index FTSE MIB in Italy to mark “dip” over 6.5%, while in Spain the IBEX 35 Spring 5% lower.
In the same pattern moved and the Athens Stock Exchange which recorded more than 4% losses with the General Index standing at 1,609.82 points.
With “heavy” losses asia closed
The shock of Trump’s duties plunged into the red and the Asian-Pacific stock markets.
More specifically, the index Nikkei In Japan, it ended with a 2.80% drop, with up to 4% lower, now moving 20% lower than its high last July, while the wider Topix index completed the session with a “dive” of 3.37%. In the South Korean Stock Exchange the index Kospi closed with losses of 0.86%.
In Australia, the index S&P/ASX 200 He finished the day with a drop of 2.44%, slipping into a correction area, as he has slid 11% lower than his recent high in February.
China’s response
It announced yesterday, Friday that it will all imports from April 10.
On Wednesday, the US president presented 34% additional tariffs on all Chinese products imported into the US, in a move that is ready to cause significant adjustment of relationships and scale the trade war between the world’s two largest economies.
“This US practice is not in line with international commercial rules, it seriously undermines China’s legal rights and interests and is a formal unilateral intimidation practice.”the Chinese State Council’s duties Committee said in a statement announcing the reciprocal duties.
The announcement followed the condemnation of the Chinese Ministry of Commerce on Thursday of the new US US Drawing regime, saying it threatens the difficult -gaining balance achieved by multi -year multilateral trade negotiations.
“This is a formal act of unilateral bullying,” the ministry said, calling on Washington to “immediately” abolish the duties and resolve any disputes through “fair and equal dialogue” with its commercial partners.
“China’s aggressive movement on US duties confirms that we are heading for a world trade war, a war that has no winners and will harm economic growth and demand for basic products such as crude oil and refined products,” said Ole Hansen, head of strategy.
Commenting on China’s specific response with his post on Truth Social, the US president said:
«China’s movement was wrong, panicked – the only thing that has no room to do!»
Trump duties: Commercial Shock
“The immediate trade shock in Asia will probably resonate in Europe as well,” said Deutsche Bank chief economist Robin Vinklers. Chinese manufacturers will try to sell more of their products in Europe and elsewhere as they face “a terrible tariff wall in the US”.
“We need to take assurance measures for most of our industries,” said a senior EU diplomat. “We are very concerned that this will be another intensity point with China. I do not expect that they will change their exporting surplus productive capacity. “
The diplomat added that the EU has already imposed duties of up to 35% on Chinese electric vehicles and that Brussels is likely to have to climb “much higher” on other products.
Policy -executives around the world reflect on their next moves in a time of turmoil in the global trade system, as the Trump government has amazed the US trade partners with the range and scale of so -called mutual duties. According to the Yale Budget Lab, the measures have led the actual US tariff rate at a level not observed since 1909.
The EU is one of the economies subject to a higher contribution than the basic duty of 10% applied by the White House to all its partners except Canada and Mexico.
But China will be even harder. Beijing faces a 34%’mutual’ duty, in addition to the 20%tax already imposed by the US president, who has also targeted countries through which Chinese companies divert products to the US, including Vietnam, which faces a new 46%duty.
Trump: The surgery is over, the patient survived and recovering
“I think it’s going well. The markets will be launched, the shares will be launched, the country will be launched, “the US president said, departing from the White House yesterday to join a golf -backed tournament supported by Saudi Arabia in his club in Doral, Florida.
The announcement shook markets worldwide, but Trump found the reaction expected. He likened the United States to a sick patient who needs surgery when he was asked by a journalist about his reaction to the worst drop in the Stock Exchange for years: “I think it’s going well. We have a surgery, such as when a patient is operated on and is a big thing. I said that exactly it would happen, “he said.
He talked about investment of trillion dollars that “come to the country” from companies that want to produce their products in the US to avoid duties.
“The rest of the world wants to see if there is a way to make a deal,” he said. Later, speaking to reporters at the Air Force One, Trump said he would be open to using duties to negotiate with other countries and that it would depend on whether they had something particularly worthwhile to offer in return.
“For many years, we were handling the ball wrong and you will see it, I think it will be incredible,” Trump said as he left the White House.
JP Morgan for Trump duties: ‘Blood will spill’
The largest US bank now gives 60% of the world’s economy to slip into recession as a result of the “liberation day” declared Wednesday by Trump.
Investment bank analysts say that if the policies implemented by the Trump government are maintained “they will probably lead the US and possibly the world economy in recession this year”.
In a note to investment bank customers, which according to Bloomberg is entitled “Blood will be spilled”, JP Morgan’s leading economist Brus Kasman says that due to Trump duties, the chances of recession increased by 20% – to 60% from 40% previously.
He also described the duties the largest tax hike for US households and US businesses since 1968.
“The result of this tax increase is likely to be enlarged – due to retaliation, the slide of the US business climate and supply chains problems,” Casman adds.
JP Morgan economist points out that duties are a “essential macroeconomic shock”.
Oil: dip 8%
They fell by 8% on Friday, heading for their lower closure from the middle of the Coronovan pandemic in 2021.
Brent’s future filing contracts dropped $ 5.30 or $ 7.6%to $ 64.84 a barrel to 1254 GMT. Future Future Future Slow West Texas Intermediate lost $ 5.47 or $ 8.2% at $ 61.48.
Both reference indicators were in orbit for their biggest weekly losses at more than two years.
