The fact that the President of the United States, Donald Trump, announced 20% tariffs on imports from the European Union and subsequently on imports from the following countries has caused global unrest:
China (34%), India (26%), South Korea (25%), Japan (24%), United Kingdom (10%), Vietnam (46%), Switzerland (31%), Cambodia (49%), South Africa (30%), Indonesia (32%), Brazil (10%), Singapore (10%). For imports from Taiwan, the tariffs will be 32%.
The list of tariffs by country and the list of tariffs as announced by the White House
The countries on which the tariffs were imposed
Stock market indices are plunging, with investors deeply concerned about the effects on inflation and global economic growth.
European stock markets closed with a significant decline.
The Paris Stock Exchange closed with a 3,31% drop, the largest percentage drop since March 15, 2023. The same picture for Frankfurt (-3,01%) and Milan (-3,60%), the fall in London was slightly smaller (-1,55%).
On Wall Street, around 19.00:3,78 PM (Greece time), the main indices recorded heavy losses: -500% for the S&P 4,88, -3,10% for the Nasdaq high-tech index, -XNUMX% for the Dow Jones.
At the same time, the dollar also fell against the euro by 2,06%, to 1,1053 dollars per euro.
Technology giants that use components manufactured abroad, such as in Taiwan (which was hit with 32% tariffs), are seeing their shares fall: -8,22% for Apple, around 18.50:6,19 (Greece time), -5,58% for Nvidia, -7,22% for Tesla, -6,02% for Amazon, -3,04% for Meta, -XNUMX% for Alphabet.
In Europe, semiconductor companies suffered heavy losses: Infineon closed down -7,96% in Frankfurt and STMicroelectronics fell -8,17% in Paris.
The clothing sector is also recording large losses, due to tariffs in China (34%), Vietnam (46%) and Cambodia (49%): on Wall Street, Gap is down 18,57%, Ralph Lauren is down 15,93%, Lululemon is down 11,03%, Nike is down 9,97%.
In Europe, Adidas closed down 11,72%, Puma fell 11,16%, JD Sports fell 7,89%.
The prospect of a contraction in global trade also dragged down shares in shipping companies. Germany's Hapag-Lloyd closed down 7,95% in Frankfurt, AP Moller-Maersk down 9,49% in Copenhagen and Kuehne + Nagel down 2,34% in Zurich.
“British banks are particularly exposed to Southeast Asia. If China’s export economy deteriorates, that is not good for their business,” explained Guillaume Saloun, director of equity management at Delubac AM. On the London Stock Exchange, Standard Chartered’s shares fell 12,80%, Barclays’s 9,08% and HSBC’s 8,62%.
The climate in Brussels is heavy
The dance of countermeasures was opened by Canadian Prime Minister Mark Carney, announcing the imposition of 25% tariffs on all imported cars from the United States that do not comply with the United States-Mexico-Canada Trade Agreement (USMCA).
Mark Carney, who succeeded Justin Trudeau as Canadian prime minister, did not specify the volume of American imports that would be affected by this measure.
Canada was spared the wave of new tariffs announced by Trump. However, the US's largest trading partner had already been targeted by additional US tariffs on steel and aluminium, while as of this morning car exports to its southern neighbour were subject to 25% tariffs.
As soon as this measure came into effect, the world's fifth largest automaker, Stellantis, announced that it would suspend operations at its factory in Ontario, Canada, for two weeks.
The trade war started by Trump "will disrupt the global economy," Canada's prime minister warned.
The French president spoke of a "European response" in "two stages"
China, for its part, urged the US to "immediately cancel" the new customs duties announced by Trump, which are particularly high for its products, pledging to take countermeasures to defend its "rights and interests".
The burden is astronomical for the Asian giant, as it was targeted by new 34% taxes on its exports to the US, in addition to the 20% customs duties already implemented by the Donald Trump administration.
"China urges the US to immediately cancel unilateral customs duties and properly resolve disputes with its trading partners through equal dialogue," the Chinese Ministry of Commerce responded.
This attack with characteristics of protectionism from the White House, unprecedented since the 1930s, puts "global economic growth at risk" and threatens international supply chains, even having an impact on American interests, according to the Chinese ministry.
These customs duties "do not respect international trade rules and seriously harm the rights and interests of the parties concerned," the Chinese Ministry of Commerce also denounced, pledging to take countermeasures.
"Cruel and unfounded decision"
Macron condemned Trump's "brutal and unfounded decision", with the French president speaking of a shock to global trade and measures with extremely serious consequences for the European economy.
Speaking at a meeting of industry leaders affected by these US tariffs, also attended by Prime Minister François Bayrou, Emmanuel Macron spoke of a decision of "unprecedented scale" that "will have a huge impact on all sectors of the European economy and exports."
"But what I want to emphasize at the beginning of this meeting is that the magnitude and the negative nature of this decision are primarily for the American economy. And one thing is certain: with tonight's decisions, the American economy and Americans, whether businesses or citizens, will emerge weaker than and now poorer," he said.
As for Europeans, “we must remain united and determined at this stage. And I also say this because I know what will happen. The bigger players will tend to act on their own, and that is not a good idea,” Mr. Macron warned.
"It is an attack on the idea we had about our alliance with the US"
The French president spoke of a "European response" in "two stages."
"The first response will come in mid-April and will concern the tariffs that have already been imposed, particularly on steel and aluminum," he said.
"The second, more massive response, that to the tariffs announced, will be made at the end of the month after a detailed study, by sector and in collaboration with all member states and economic sectors," the French president stressed.
At the same time, he called on French companies operating in the US to suspend all their investment plans there until Donald Trump's announcement of a massive increase in tariffs against the European Union is "clarified".
"What is important is (...) that future investments or those announced in recent weeks be temporarily suspended until we clarify things with the US," Macron stressed, adding: "because what would be the message if major European players start investing billions of euros in the American economy at a time when they are "hitting" us?"
Bayrou noted that Trump's announcements "are not just an attack on the principles of international trade: they are an attack on the idea we had of our alliance with the US" and "the stability of the world, at least the Western world."
"All appropriate measures" will be taken
Immediately afterwards, the Brazilian president promised that "all appropriate measures" would be taken to "defend companies and workers" in the South American country, which was targeted with 10% customs duties by the US.
"We defend multilateralism and free trade and will respond to any attempt to impose a protectionism that no longer has a place in the world," said Luiz Inácio Lula da Silva, during an official ceremony in Brasilia.
The measure targeting Latin America's largest economy was announced by Donald Trump, as part of a colossal protectionist offensive that has imposed a barrage of tariffs across the world.
"Faced with the US decision to impose additional tariffs on Brazilian products, we will take all appropriate measures to defend our businesses and our workers," Lula said.
According to him, these measures will be based on "the law of economic reciprocity", approved by the Brazilian parliament, as well as on "the guidelines of the World Trade Organization".
The law in question, which was voted in favor with rare unanimity by both the left and the right, allows the Brazilian government to “adopt countermeasures” to respond to “unilateral actions, policies or practices of a country or an economic bloc that negatively affect the global competitiveness of Brazilian goods and products.”
"He is an ignoramus"
Donald Trump "is an ignoramus," said the president of the regional authority of Reunion, a French island in the Indian Ocean, reacting to the US government's plans to impose tariffs on this territory, tariffs that differ from those decided by Trump for the rest of the European Union.
The impact of the American decision on Reunion Island will be significant, as this overseas territory of France will see its products taxed at 37%, compared to 20% for the EU and by extension France.
For Uganda Bello, the president of the island's regional authority, "Reunion is part of the European customs system, so special customs duties cannot be imposed on us."
According to the White House table summarizing the new US tariffs, French overseas departments and territories will be subject to separate tariff levels, ranging from 10% for the French Antilles, Guyana (South America) and Mayotte (Indian Ocean) to 50% for products imported from Saint-Pierre and Miquelon.
The regional authority of Reunion, in a statement, expressed its "outrage" over a decision that, as it said, "makes no sense."
"Regardless of the inconsistencies of these proposals and the risks they pose to the global economy, some of them seem unrealistic and even legally unfounded," the island's administration emphasizes, criticizing the "disinformation maneuvers" of the American president.
The volume of trade between Réunion and the United States is low, but not non-existent. According to Iedom, the overseas organ of the Bank of France, Réunion exported goods worth 391,3 million euros in 2023.
Metropolitan France is the island's main trading partner, ahead of China and the rest of the European Union, but the overseas region of France exports fishery products worth just under 40 million euros to the US.
Trump's announcements have caused misunderstandings and confusion in the French overseas territories.
“This is not even a veiled attack on France; it is, in a way, a challenge to the French presence in these territories,” Victorine Laurel, a former minister of Overseas Territories and Socialist Party senator for Guadeloupe, told reporters, calling for “a reaction from the President of the Republic, from the government on this issue.”
Source: in.gr
