Despite significant economic repercussions and pressure from various global entities including Wall Street, China, and the European Union, President Trump remains committed to his global trade war strategy. He insists on securing new trade deals, although the specifics of these deals remain undefined. While he initially reversed some tariffs, he simultaneously increased tariffs on China and maintained others.
JPMorgan Chase CEO Jamie Dimon highlights considerable economic turbulence in the US, directly linking it to tariffs, inflation, and government deficits. Market volatility is evident in rising yields on 10-year US government bonds. China retaliated by increasing its tariffs on US products, while the EU also considers retaliatory measures, potentially targeting US tech companies.
China, under President Xi Jinping, vows to fight back against what it calls “unilateral bullying,” raising tariffs to 125 percent. The EU expresses willingness to negotiate but also prepares retaliatory measures. Although the Trump administration reports ongoing talks with various countries, it admits to having no direct discussions with China.
The White House maintains its aggressive stance, framing the tariffs as a response to unfair trade practices by other nations. Furthermore, Trump promises additional levies, particularly targeting pharmaceuticals. The ongoing trade war and economic uncertainty have significantly impacted US consumer confidence, reaching its second-lowest point since 1952. Canada and Mexico, while not affected by the universal tariff, still face tariffs on specific goods under the USMCA agreement.