Washington (Web News)
Following U.S. President Donald Trump’s announcement of tariffs on over 100 countries, American stock markets have seen a significant downturn. For example, technology giant Apple, which manufactures its products in China, witnessed a 9% drop in its stock value. Meanwhile, the UK has prepared a list of American goods that may face retaliatory tariffs. In just two days, investors lost over $6 trillion in market value.
Two days ago, President Trump announced retaliatory trade tariffs against dozens of countries, including Pakistan. Almost no region in the world has been spared by this recent tariff policy — even the uninhabited islands near Antarctica, home only to penguins and last visited by humans about 10 years ago, have been affected.
According to American media, more than $6 trillion has been wiped off the stock markets in just two days following the tariff announcement. Additionally, there’s speculation that Chinese goods may now be redirected toward European markets.
Following Trump’s announcement, U.S. stocks experienced their worst decline in five years. The Dow Jones dropped by 5%, the S&P 500 by 4.6%, and the Nasdaq by 4.7%. In London, the FTSE 100 index saw a record 5% decline — the worst since the COVID-19 pandemic. Germany’s stock market fell by 4%, and Japan’s by 2.8%. Due to fears of a trade war, oil prices plummeted by 8%, hitting a four-year low.
U.S. Federal Reserve Chairman Jerome Powell warned of rising prices and slowing economic growth. Despite President Trump’s insistence, Powell declined to cut interest rates for now. On the other hand, the White House Press Secretary said that anyone standing on Wall Street in the morning should trust President Trump. She told CNN there would be no compromise on the tariff measures.
IMF Managing Director Kristalina Georgieva stated that American tariffs during a period of sluggish growth pose a serious threat to the global economy. Furthermore, the prime ministers of the UK, Australia, and Italy have also labeled the trade war as a major threat to international commerce. The three leaders agreed to work together for economic stability.
In response to Trump’s tariffs, the UK has drawn up a list of American products that could face retaliatory tariffs. However, the British government clarified that just because an item appears on the 417-page list doesn’t mean it will definitely be taxed. According to the Department for Business and Trade, 27% of U.S. imports on the list have minimal impact on the UK economy. The list includes thoroughbred horses, children’s clothing, crude oil, guns, and bourbon.
The British government is still consulting with the business sector regarding the potential impact of U.S. tariffs and how best to respond. Business Secretary Jonathan Reynolds said that the government believes a deal with the U.S. is possible and in the UK’s interest, but stressed that Britain reserves the right to take retaliatory steps if no agreement is reached.
It’s worth noting that under Trump’s plan, a 10% tariff has been imposed on the UK. The American tariffs could have three effects globally: prices may rise or fall, jobs may be impacted, and interest rates may remain elevated.
UK Prime Minister Keir Starmer emphasized that Britain cooperates more with the U.S. than any other country, but any decision in this matter will be made keeping national interest in mind. He stated that there are two possible paths: either respond in kind or adopt a strategy of restraint. He suggested the latter might be the better course.