Trump Vs China: New Twist in Global Trade War!
Donald Trump is once again in the headlines, and this time the reason is his new attack on China! On Friday, Trump made a bold statement on Truth Social – “China played it wrong, they panicked — the one thing they cannot afford to do!” He says that China gave the wrong response to his tariffs, and now the result of this panic is being seen on stock markets around the world.
Stock Markets in bad shape
After the market panic, investors around the world came under tension. Wall Street started its day with major sell-offs, in which both Dow Jones and S&P 500 fell by almost 3%. European markets were also not spared by this impact—indices in Frankfurt and London fell more than 4%, and Tokyo’s Nikkei went down 2.8%.
Trump’s reply: “It’s a chance to become rich!”
Even after the stock market crash, Trump did not seem at all fazed. He said, “This is a great time to get rich, richer than ever before!” Trump believes that his economic policies will benefit America in the long-term, and these tariffs will force foreign companies to shift their production to the US.
China’s reaction: Plan to take revenge?
China is also not going to give up! Beijing announced it was imposing new tariffs of 34% on US imports from April 10. In addition, China took another big step—imposing export restrictions on rare earth elements (which are used in high-tech electronics and medical devices).
What are Europe and other countries doing?
The rest of the world is also reacting now. The European Union says it will respond with a “calm and phased” approach. France and Germany are discussing whether they could tax US tech companies. Japan is also upset with Donald Trump’s tariff policy, and PM Shigeru Ishiba said his country will give a “calm-headed” response.
Impact on Automobile Industry
The biggest impact of Donald Trump’s new tariffs is on the automobile industry. The US has imposed a 25% tax on foreign-made cars, to which Canada has responded. Because of this, brands like Jeep and Chrysler are slowing down production at their Canadian and Mexican plants. Nissan has announced that it will stop selling some car models in the US. On the other hand, China’s Geely-owned Volvo has decided to increase its car production in the US.
What will happen next?
This global trade war is going to intensify further. Experts say that if it continues like this, it will have a huge impact on economies across the world. Trump’s supporters are considering this a smart move, while critics are saying that this can be a loss-making deal for America as well.
What do you say? Is Trump going in the right direction or is this a risky gamble? Do give your opinion in the comments!