Donald Trump’s fiery trade tariff policies have finally been introduced to the market. The US president’s tariff plans have gone into effect from today onwards. This development is sparking a widespread debate on the repercussions that the aforementioned move may trigger, which includes shaky world markets as well as the start of a full-fledged global trade war.
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Global Trade War Fear Grips The Market
Donald Trump’s aggressive trade policies have finally debuted, marking their formal entry in international markets as of today. His policies include levying heavy import tariffs on certain nations, which have been primarily put in place to strengthen the US economy. Trump’s diverse economic plan prioritizes bolstering the US manufacturing unit, which can be achieved through such tariff deployments. In essence, the US president wants the world to establish key factories in the US, offering employment opportunities to the US citizens, helping solidify the new US economic order.
“Tariffs are a central part of Trump’s economic plans. He says tariffs will boost US manufacturing and protect jobs, as well as raise tax revenue and grow the economy.” BBC stated.
However, that being said, experts around the world are busy discussing the aftermath of these tariffs. Per BBC, Trump’s tariff strategy may gravely backfire, with countries imposing counter tariffs on the US. At the same time, Trump is also inviting an array of criticism for his tariff policies. Many are of the view that his tariffs on China may elevate the prices of businesses and consumers in the coming months, which can deteriorate the overall health of the US economy.
“The risk for the president is that his sweeping tariffs, which also target China, may drive up prices for businesses and consumers in the months ahead, damaging the health of the US economy—the issue that Americans say they care about most,” BBC stated.
In addition to this, if these tariffs fail to bear any long-term fruit, the move can jeopardize Trump’s second term presidency, inviting voter backlash.
Tariffs That Are Live From Today
Per the Kobeissi letter, a few tariffs imposed by Trump have gone into effect from today onwards. This list includes:
- 25% tariffs on all goods from Mexico to the US.
- 25% tariffs on all goods except energy from Canada to the US
- 20% tariffs on many goods from China to the US
- 10% tariffs on energy from Canada to the US
- 25% retaliatory tariffs on up to $155B of goods from the US to Canada
TARIFFS NOW LIVE:
1. 25% tariffs on all good from Mexico to US
2. 25% tariffs on all goods except energy from Canada to US
3. 20% tariffs on many goods from China to US
4. 10% tariffs on energy from Canada to US
5. 25% retaliatory tariffs on up to $155B of goods from US to…— The Kobeissi Letter (@KobeissiLetter) March 4, 2025
The news has sparked a widespread market frenzy, with the Dow Jones noting a decline of 300 points. Bitcoin also fell sharply, responding to the aforementioned announcement, hovering at $86K at press time.
Meanwhile, crypto markets sold off sharply as there have been no additional details about the US Crypto Reserve.
— The Kobeissi Letter (@KobeissiLetter) March 3, 2025
Between the market open today and the low just now, crypto erased nearly -$300 BILLION of market cap.
The majority of yesterday's gains have been erased. pic.twitter.com/06LQdq1CTg
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