The Instant Impact of Trump's Trade War

The tariff war policy for 180 countries officially announced by the President of the United States, Donald Trump on April 2, 2025 immediately had a negative impact on the global economic sector. Concretely, after the announcement of new import tariffs, affected countries such as China immediately reacted by setting a counter tariff of 34 percent on US products that would enter the Chinese market. Following China, Canada also announced retaliatory tariffs of 25 percent on US automotive products entering Canada. In addition, the US stock market was also turbulent.  For example, Nike shares fell 14 percent, Apple fell 9 percent, Tesla fell 5 percent, Nvidia fell 8 percent. This is the fruit of the abnormal policy that Trump has decided.

The United States, which has led the world economic order for 80 years and contributed to the economic growth of other countries through free trade schemes by reducing import duties so as to create global prosperity, has now under Trump's control chosen to step back. The US is now a country that isolates itself from the world economic stage, becoming a protectionist country and leaving the global economy without a driver. The liberal economy that was supposed to remove tariff barriers has now become a tariff-ridden economy in which the United States is the originator.

Source: cnn.com

The United States, which has been known as the champion of globalization and free trade, now under the Trump 2.0 administration has transformed into an anomalous country, denying the spirit of globalization and trade liberalization. Trump with his strange policies wants to bring the US economy into a closed economy a la North Korea, Mao Zedong's Chinese economy, Stalin's Soviet Union economy. For citizens of the United States and citizens of the world who understand economics, of course, will judge Trump's policy as a step backwards and strange. How can it be when the United States economy is the most advanced in growth of all nation states in the world, the United States instead imposes a trade war that makes other countries upset so that the economic sector market is turbulent.

At least this is the real impact of the tariff war that Trump has just announced. We never know whether in the following days the world economy will still be fine or getting worse. Will the US as the initiator of the tariff war and other affected countries survive the economic recession, for example, avoid the threat of inflation, stagflation, as a result of Trump's crazy policies. We'll see.