US President Donald Trump has firmly defended his controversial decision to impose sweeping tariffs on a majority of America’s trading partners. The move, which was announced earlier this week, has sent shockwaves through global markets and triggered a wave of backlash from world leaders, reports CNN.
“To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!” Trump posted on his Truth Social platform, expressing his continued confidence in his economic policies.
Despite this, the US stock market experienced its most significant drop since the Covid-19 pandemic in 2020, with the Dow Jones Industrial Average plummeting by 2,231 points on Friday, as reported by CNN.
US Federal Reserve Chairman Jerome Powell acknowledged that the tariff hikes would be “significantly larger than expected” and warned of potential long-term economic effects. "While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent,” Powell stated.
White House Press Secretary Karoline Leavitt sought to downplay concerns, claiming the tariffs would not harm American businesses. "There’s not going to be any pain for American-owned companies and American workers, because their jobs are going to come back home,” she said in an interview with NewsNation on Thursday. She also pointed to Trump’s plans for tax cuts, aiming to boost the American economy.
On April 2, Trump announced a 10% baseline tariff on all imports and additional "reciprocal" duties on several countries with which the US has trade imbalances. The President argued that many nations were exploiting the US through policies such as currency manipulation and high value-added taxes.
In retaliation, China imposed a 34% tariff on US goods, matching Trump’s tariffs on Chinese products. The European Union condemned the move, warning of further countermeasures. Meanwhile, Canada said it would impose a 25% levy on American car imports in response to what it called "unwarranted and unjustified" tariffs.
Ngozi Okonjo-Iweala, the head of the World Trade Organization, cautioned that a full-scale trade war could be devastating for the global economy. She warned that the tariffs could lead to a contraction of approximately 1% in global merchandise trade, further exacerbating the economic instability.
As tensions rise, the long-term implications of Trump’s tariffs remain unclear, but world leaders and economists alike are watching closely to assess the potential for an escalating trade conflict.
Bd-pratidin English/ Jisan
