U.S. President Trump announced a large-scale increase in tariffs, triggering severe market volatility globally. China was the first to retaliate, Europe is contemplating a response, and Asian and African countries are taking divergent stances. The new round of global trade tensions has rapidly escalated, shaking the existing international trade order.
U.S. President Trump recently announced the implementation of a new round of "reciprocal tariff" policies targeting dozens of countries and regions, including a 34% tariff on Chinese goods, and expanding tariff measures on exports to the EU, Japan, India, and other areas, sparking intense reactions worldwide.
Global Market Plunge, China Strikes Back Swiftly
In financial markets, the S&P 500 index plummeted by 6% last Friday, the Dow Jones Industrial Average fell by 5.5%, and the Nasdaq dropped by 5.8%. Global stock markets fell in unison, with Germany's DAX index declining more than 5%, the UK's FTSE 100 index falling nearly 4%, and France's CAC 40 index also suffering heavy losses.
China swiftly responded after Trump announced the tariffs, announcing a 34% tariff on all American products starting April 10th, and restricting exports of rare earth materials such as samarium and gadolinium. Chinese Foreign Ministry spokesperson Guo Jiaqun stated on social media that "the market has reacted," criticizing the U.S. for "abusing tariff weapons, which is an act of economic bullying."
Countries Take Different Stances; Asia, Africa, and America Adopt Varied Strategies
UK Prime Minister Starmer wrote in The Sunday Telegraph, "The world we once knew no longer exists," and the old rules of international trade are no longer reliable. He indicated that the British government will "remain calm, pragmatic, and committed to national interests," promising to respond to new challenges with "the best of British traditions – clear-headed pragmatism and a firm grasp of national interests." Starmer emphasized that Britain will not rashly join a trade war but will not rule out any options, stating that "all options are on the table." He also called for the protection of key industries and the accelerated formulation of new industrial policies to enhance domestic competitiveness. He stressed that the future world will depend more on agreements and alliances than on old rules, and that "rules-based multilateral trade systems" are the right path for the globe. Meanwhile, Jaguar Land Rover announced it would suspend April exports to the U.S. to cope with the new 25% import car tax. In India, Reuters cited anonymous officials reporting that despite the U.S.'s new 26% tariff on Indian goods, the Modi government has no intention of retaliating. The official pointed out that Trump's executive order contains provisions allowing exemptions for countries that "take significant measures to improve trade imbalances." India hopes to achieve favorable positions through continuous negotiations. Another Indian government source said that India reached an agreement with the U.S. in February this year, aiming to complete an initial trade agreement by autumn 2025. Additionally, the Modi government recently reduced import taxes on high-end motorcycles, bourbon whiskey, and other American products and abolished the digital service tax affecting American tech companies to bridge ties with the U.S. However, analysts pointed out that the new tariff policy could reduce India's economic growth rate by 20 to 40 basis points this year, severely impacting the diamond processing industry reliant on the U.S. market, with thousands potentially losing their jobs. Vietnam's Foreign Ministry spokesperson expressed regret, believing that the U.S.'s 46% high tariff "fails to reflect the spirit of cooperation," and emphasized Vietnam's hope for continued dialogue to promote stable bilateral relations. Analysts noted that electronic, footwear, aquaculture, and other export industries to the U.S. will be severely impacted.
Hong Kong: 'Free Port' Policy Remains Unchanged
Hong Kong Financial Secretary Paul Chan clearly stated at an event that although China has taken countermeasures, Hong Kong will not follow suit by imposing additional tariffs on American goods. He emphasized that the "free port" policy remains unchanged, stating that "the free flow of funds into and out of the free port is our core advantage, so this will not change." He pointed out that Hong Kong adheres to "a rules-based multilateral trading system" as its core stance. Although exports to the U.S. account for a small proportion of local GDP, he reminded that indirect impacts should not be underestimated, noting that "indirect impacts far outweigh direct ones, and they cannot be underestimated." Brazilian Vice President Alckmin said that Trump's tariffs might accelerate the implementation of trade agreements between South America and the EU. He stated that Brazil does not intend to immediately adopt retaliatory measures but hopes to avoid escalating conflicts through dialogue. Zimbabwean President Mnangagwa announced the suspension of all import tariffs on American goods to "promote trade with the U.S. and seek sanctions relief." Critics pointed out that this unilateral move may undermine Zimbabwe's regional position within the Southern African Development Community (SADC). South African International Relations Minister Lamola stated that the government will advance strategies to diversify export markets to reduce reliance on the U.S. He noted that the U.S. is currently South Africa's second-largest export market, but the country cannot tie its fate to a single market.
The EU Prepares to Counter; Countries Plan Their Next Steps
The EU is preparing to vote on April 9th on how to impose retaliatory tariffs on certain American products. After meeting with EU Trade Commissioner Šefčovič, US officials indicated that the EU is willing to negotiate but is "prepared to defend its own interests." Italian Finance Minister Giorgetti called for avoiding escalation into a full-scale trade war, warning that counter-tariffs could have dual impacts on Italy and the entire European economy.
US Officials Defend Tariff Logic, Saying Over 50 Countries Seek Negotiations
In response to external skepticism, White House Senior Economic Advisor Hassett told ABC's This Week program on Sunday that over 50 countries have contacted the White House hoping to initiate trade talks. He denied that the tariff policy was deliberately created by Trump to cause market turmoil to pressure the Federal Reserve to cut interest rates. Hassett claimed that the Trump administration's trade actions are not politically manipulating the Fed, stating there will be "no political coercion." Previously, Trump reposted a video clip on social media suggesting that tariffs aim to force the market down to prompt the Fed to cut rates, sparking controversy. U.S. Treasury Secretary Besten downplayed the severity of the stock market fluctuations in an NBC program, emphasizing that he does not believe the U.S. economy will enter a recession due to tariffs, citing strong job data released last week as support. He noted that "job data far exceeded expectations, showing that our economy is still moving forward." Despite this, the general consensus is that U.S. financial markets have fallen by about 10% due to tariff news, marking the worst week since the pandemic. Multiple economists and Federal Reserve Chairman Powell have warned that tariff measures could trigger inflation and harm economic growth. Analysts expect the Fed to pause rate hikes in the coming months to observe the subsequent impact of the policies. Source: DW Original: https://www.toutiao.com/article/7490286093607158324/ Disclaimer: This article represents the author's personal views. Please express your attitude by clicking the "Like/Dislike" buttons below.