Stock markets across the globe reeled in response. While Chinese equities held stable with state-backed interventions, U.S. and European futures indicated further volatility ahead. Safe-haven assets like U.S. Treasury bonds also saw widespread selling as investors rushed to cash.
Date: April 9, 2025
By: www.ojasvinews.com
WASHINGTON/SINGAPORE – President Donald Trump has unleashed the largest wave of tariffs in over a century, intensifying his ongoing trade war with dozens of countries. As of early Wednesday morning, a new round of “reciprocal” tariffs—some as steep as 104% on Chinese goods—has officially taken effect, shaking global markets and amplifying recession warnings from top economists.
📉 “This would be the largest U.S. tax hike in nearly 60 years,” said JPMorgan analysts in a recent economic outlook.
The tariffs, which Trump says are designed to “restore fairness” and fix the U.S. trade deficit, have already triggered significant market turmoil. The S&P 500 has suffered its steepest losses since the index was created in the 1950s, edging dangerously close to bear market territory—defined as 20% below recent highs.
What the Tariffs Include
According to the Trump administration, reciprocal tariff rates are calculated by dividing a country’s trade deficit with the U.S. by its exports to the country and multiplying by one-half. The tariffs affect both allies and adversaries:
- China – 104%
- Vietnam – 46%
- Japan – 24%
- South Korea – 25%
- European Union – 20%
These are in addition to a universal 10% import tariff imposed last Saturday on nearly all foreign goods, excluding Mexico and Canada.
🛑 Read more: USTR Tariff Announcements
Market Fallout & Global Response
Stock markets across the globe reeled in response. While Chinese equities held stable with state-backed interventions, U.S. and European futures indicated further volatility ahead. Safe-haven assets like U.S. Treasury bonds also saw widespread selling as investors rushed to cash.
Central banks in India and New Zealand quickly responded with interest rate cuts, and South Korea unveiled emergency subsidies to protect key industries such as automobile manufacturing.
📊 Related: Goldman Sachs: Countdown to a Recession
Meanwhile, China responded defiantly, raising its retaliatory tariffs to 34% and pledging to “fight to the end.” Major Chinese brokerages and state-owned firms have banded together to support domestic markets.
Economic Forecasts & Consumer Impact
Top financial institutions are now increasingly forecasting a global recession. JPMorgan has raised its global recession odds to 60%, while Goldman Sachs now pegs the likelihood of a U.S. recession at 45% within the next 12 months.
💡 “The probability of stagflation is 100%,” warns Brian Bethune, economics professor at Boston College, citing rising prices alongside shrinking growth.
The Tax Foundation estimates the average American household will pay $2,100 more per year due to higher import costs. Retailers and manufacturers are expected to pass these costs down to consumers, increasing prices on everyday items from sneakers to smartphones.
📈 Check out: Tax Foundation Tariff Impact Analysis
Global Diplomatic Fallout
While several nations, including Italy, Japan, and Vietnam, are engaging in talks with the U.S., progress has been slow. Trump has said negotiations must also address non-tariff issues like currency manipulation, tax policy, and labor practices.
In a post on Truth Social, Trump reiterated his hardline stance:
“China also wants to make a deal, badly, but they don’t know how to get it started.”
Looking Ahead
With the global economic outlook becoming increasingly uncertain, experts warn that reversing the damage may not be easy—even if the tariffs are rolled back.
🗣 “Businesses need certainty, and Trump’s chaotic approach isn’t providing that,” said Colin Grabow of the Cato Institute.
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