New trade restrictions initiated by former President Donald Trump, which include sky-high tariffs, including 104% on Chinese imports, have come into force in the United States. This is reported by Reuters, reports UNN.
Details
Despite the tensions on the international stage, Trump continues to emphasize the effectiveness of his pressure policy, declaring the desire of other countries to conclude new agreements. At the same time, he is negotiating with key partners – South Korea, Japan, and is also preparing for a meeting with Italian Prime Minister Giorgia Meloni.
However, such actions have caused a sharp reaction in the financial markets. On Tuesday, the American stock index S&P 500 fell below the psychological mark of 5,000 points for the first time in a year, approaching the "bear zone" – that is, a drop of 20% from the last peak. According to analysts' estimates, the total losses of companies included in the index reached more than 5.8 trillion dollars.
The situation is no less tense in Asia. The Japanese Nikkei lost more than 3%, and the South Korean won fell to its lowest level in the last 16 years. Markets reacted to the prospect of further escalation between the US and China, as Beijing promised a decisive response to Washington's actions, accusing the US of trade blackmail.
While Trump does not give clear signals as to how long these tariffs will be, investors remain in a state of uncertainty. Positive news about possible negotiations does not yet compensate for the fear of new restrictions and consequences for the global economy.
Let us remind you
Earlier, it was reported that the White House stated that additional tariffs of 104% against China had come into force. This happened because Beijing did not cancel its retaliatory measures, as required by the United States.