President Donald Trump’s tariffs have sparked a global trade war, leading to market turmoil and protests across the United States. The US began collecting a 10% baseline tariff on all imports on Saturday, with Trump urging Americans to “hang tough” despite the economic impact. The UK and France are among the countries affected by the tariffs, and their leaders have stated that nothing is off the table in response.
China, which has been hit hardest by Trump’s tariffs, announced a significant retaliatory response, imposing a 34% tariff on US imports. The US stock market plunged in reaction to the tariffs, with all three major indexes dropping more than 5% on Friday. The S&P 500 had its worst week since 2020.
The FTSE 100 fell almost 5% in the UK, its steepest decline in five years.
Global trade instability escalates
Asian markets and exchanges in Germany and France also faced similar declines.
Trump described the market volatility as “an economic revolution” that the US “will win.” His policy changes have sent shockwaves through global supply chains, affecting businesses worldwide. British Prime Minister Sir Keir Starmer and French President Emmanuel Macron agreed in a phone call that a trade war was in nobody’s interests, but nothing should be off the table. They shared concerns about the global economic and security impact, particularly in Southeast Asia.
China filed a complaint against the World Trade Organization regarding the new tariffs. In a statement, China’s foreign ministry urged Washington to “stop using tariffs as a weapon to suppress China’s economy and trade and stop undermining the legitimate development rights of the Chinese people.”
About 1,200 demonstrations were expected across the US on Saturday, marking the largest single day of protest against President Trump since the White House announced policy changes to expand the executive branch’s power. The impact on trade since tariffs took effect has been palpable, with the UK working to address the new trading terms.
The global community is closely monitoring these developments, aware that the outcome of this trade war will have lasting repercussions on international commerce and economic growth.
Image Credits: Photo by Kyle Glenn on Unsplash
