U.S. Tariff Hikes and Global Reactions

President Donald Trump recently announced a significant increase in tariffs on imports from several countries. The new measures impose a general tariff of 10%, with higher rates targeting specific regions: 20% for the European Union, 25% for Japan and South Korea, and 54% for China. This decision has sparked strong reactions worldwide.

Reactions in Europe

• France: President Emmanuel Macron strongly criticized the move, calling it “brutal and unjustified.” He hinted at the possibility of reassessing French investments in the United States in response to this aggressive trade policy.
• European Union: EU officials warned of the economic consequences these tariffs could bring, particularly in key sectors such as pharmaceuticals, digital services, and agriculture. An estimated €380 billion in EU exports would be affected by these new trade barriers.

Reactions in Asia

• China: Beijing has strongly condemned these trade sanctions, describing them as a form of unilateral economic pressure. The Chinese Ministry of Commerce has vowed to implement countermeasures in retaliation.
• Japan and South Korea: Both nations expressed concerns over the escalating trade tensions and urged diplomatic negotiations to prevent further deterioration of international economic relations.

Impact on Financial Markets

The announcement of these tariffs triggered significant volatility in global stock markets. In Europe and Asia, major indices suffered substantial losses, reflecting investor fears of a looming global trade war.

Warning from the Australian Central Bank

Meanwhile, the Reserve Bank of Australia has warned of the risks that these protectionist policies could pose to the global economy. The institution highlighted the potential for greater market uncertainty and the likelihood of trade retaliation from U.S. economic partners.