The global trade landscape faces heightened tensions as new U.S. tariffs spark cascading retaliatory measures from key economies, triggering widespread market volatility. On April 2, Washington announced sweeping import duties framed as "reciprocal tariffs", prompting swift backlash from China, the EU, and other trading partners.
China responded by imposing a 34% tariff on U.S. imports effective April 10 while filing a World Trade Organization complaint against U.S. measures. Beijing also restricted exports of rare earth minerals critical for tech and defense industries and suspended agricultural imports, directly impacting politically sensitive U.S. sectors.
The EU, Canada, and Brazil joined China in formulating countermeasures, underscoring growing international resistance to unilateral U.S. trade policies. Financial markets reacted violently: The Dow Jones Industrial Average plunged 1,600 points within 24 hours, while tech stocks reliant on Chinese supply chains saw steep declines. Global indices from Frankfurt to Tokyo mirrored the turmoil, reflecting fears of prolonged supply chain disruptions.
Analysts warn these developments challenge the post-war rules-based trading system. As markets gauge the ripple effects, the crisis highlights deepening economic interdependencies and the risks of escalating protectionism.
