As stock markets around the world witnesses a massive mayhem as a result of US tariffs, US president Donald Trump defended his move saying that “the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place”. The US president is still adamant in his approach even as experts warned against a high risk of inflation and subsequent recession hitting the world as a result of these tariffs.
Taking to Truth social, Trump said, “Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”
In his post he also attacked China whom he referred to as “the biggest abuser of them all”. Pointing to China he said that, despite their markets crashing, it decided to raise it’s tariffs by 34 percent on top of what it already had in place, choosing not to acknowledge earlier warning against abusing countries not to retaliate.
How China Retaliated against US tariffs
In response to US tariffs imposed by the Trump administration, China—America’s key economic competitor—announced new 34 percent tariffs on US imports, set to take effect on April 10. China also stated its intention to file a complaint against the US at the World Trade Organization and to limit the export of rare earth elements essential to advanced medical and electronic technologies.
Addressing the situation, Beijing criticized the US approach, saying that “threats and pressure are not the right way to deal with us”. Chinese Foreign Ministry spokesperson Lin Jian condemned the tariffs as “a typical act of unilateralism, protectionism, and economic bullying,” adding that the US, under the guise of reciprocity, is pursuing its own interests at the cost of others.
Also read: Donald Trump reacts to China’s retaliatory tariffs, says ‘they played it wrong’
Donald Trump’s reaction on US Fed’s interest rates
US Federal Reserve Chair Jerome Powell cautioned that the rising tariffs are likely to fuel inflation and slow economic growth, increasing the risk of elevated unemployment.
“At this point, it’s becoming evident that the tariff hikes will be significantly larger than previously anticipated,” Powell said during an event in Virginia. He added that the economic impact would likely mirror this trend, bringing “higher inflation and slower growth,” though he emphasized that it was still “too soon” to consider any changes to US monetary policy.
Meanwhile, President Trump continued to pressure the Fed to cut interest rates immediately, accusing Powell of politicizing his role as head of the central bank. In a social media post written in all caps, Trump stated, “This would be a PERFECT time for Fed Chairman Jerome Powell to cut interest rates. He is always ‘late,’ but he could now change his image, and quickly.” He further added, “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Mayhem in Global Stock Markets due to Trump’s tariffs
The global stock markets witnessed a complete bloodbath after Trump’s tariffs announcement. In Europe, markets witnessed a free fall with, Paris tumbling down over six percent along with London, while Amsterdam and Oslo each dropped more than five percent. Milan also saw a decline of over three percent.
ALSO READ: Wall Street plunges as Trump’s tariffs spark fears of recession, S&P 500 enters bear market
Besides Europe Asian markets also saw free fall, In Japan, the “circuit breaker” mechanism was triggered when Nikkei 225 futures approached an 8% drop, prompting a 10-minute pause at 8:45 am Tokyo time. Several other futures contracts also saw similar halts, according to a report by The Wall Street Journal.
In India, Sensex fell by 2,226.79 points to 73,137.90 on Monday while Nifty, the National Stock Exchange index, dropped 742.85 points to 22,161.60. The sharp sell-off reportedly wiped out investor wealth worth ₹20.16 lakh crore in early trading hours.
