The president of the United States, Donald Trump, on April 2nd unveiled a comprehensive list of reciprocal tariffs on nations. The announcement consisted of tariff details, with percentages of tariffs that the US has levied on them. The development has sparked global outrage, with nations hitting back at the US with scathing responses, adding more fuel to the fire. At the same time, the active trade war tensions are also spreading mayhem in the process, hitting the US dollar in a major blow.
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36 Nations Respond To The US Tariff Spree
April 2nd, touted as Liberation Day by President Donald Trump, has turned into a global chaos day. Trump unveiled a fresh list of tariffs on global nations, levying discounted tariffs on nations, sparking a global outcry. Many nations have condemned Trump’s trade policies, adding how this may end up impacting age-old global trade routes and established regimes.
As per the Kobeissi Letter, many nations have slapped the US with scathing reviews, fueling the trade war narrative up a notch. In one of the KL posts, the nations have come up with furious responses, with the European Union, a bloc comprising 27 nations, stating how it’s in the process of preparing retaliatory measures to hit the US with. At the same time, China has urged the US to “cancel tariffs with immediate effect,” threatening to issue countermeasures if the US fails to retract its tariffs.
“Government Responses to US Tariffs, So Far: 1. European Union: Retaliatory measures are being “prepared.“ 2. China: Urges the US to “immediately” cancel reciprocal tariffs or they will take “counter-measures.”
Germany and Japan have also countered the US’s tariff spree, demanding “the EU pressurize Trump,” with Japan labeling the entire narrative as “regrettable while seeking exemption.”
“3. Germany: Calls on EU to pressure President Trump. 4. Japan: Says tariffs are “regrettable” and seeks exemption”.
Canada and Mexico, on the other hand, are preparing countermeasures as well, with South Korea busy preparing emergency support plans for “impacted industries.”
“5. Canada: Preparing countermeasures to existing tariffs. 6. Mexico plans a broader response as soon as April 3rd. 7. South Korea: Begins emergency support for impacted industries.”
The United Kingdom, on the other hand, is hoping to strike a deal with the US. Brazil, on the contrary, stated how they are planning to approach the WTO for a possible resolution.
“UK: Attempting to reach a trade deal with the US, keeping “options open. 9. Brazil: Considering going to WTO, evaluating potential responses.”
Government Responses to US Tariffs, So Far:
— The Kobeissi Letter (@KobeissiLetter) April 3, 2025
1. European Union: Retaliatory measures being "prepared"
2. China: Urges the US to "immediately" cancel reciprocal tariffs or they will take "counter-measures"
3. Germany: Calls on EU to pressure President Trump
4. Japan: Says… https://t.co/Mp5l2qbtcA
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Trade War Looming, Markets Bleed On Impact
The entire trade war narrative is gaining momentum due to Trump’s tariff spree, with nations planning to issue counter-tariffs to combat the US’ strict stance. The KL post further outlined how the phenomenon of imposing reciprocal tariffs on reciprocal tariffs may gain steam in the process, influencing the world markets in the process.
“It’s official: After “Liberation Day,” the Russell 2000 has closed in BEAR market territory for the first time since 2022. Over the last 24 hours, S&P 500 stocks have erased -$120 billion PER HOUR for a total of -$2.9 trillion.”
It's official:
— The Kobeissi Letter (@KobeissiLetter) April 3, 2025
After "Liberation Day," the Russell 2000 has closed in BEAR market territory for the first time since 2022.
Over the last 24 hours, S&P 500 stocks have erased -$120 billion PER HOUR for a total of -$2.9 trillion.
What's next? Let us explain.
(a thread) pic.twitter.com/SzOJhxshf7
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