Washington's latest wave of tariffs targeting over 180 nations and regions has triggered immediate economic turbulence at home and abroad, drawing sharp criticism from analysts and trading partners alike. The Dow Jones Industrial Average plummeted nearly 4% following the policy announcement, erasing $6.4 trillion from U.S. markets in two days amid investor panic.
Manufacturing Mirage
Despite years of political pressure to reshore production, key industries remain globally integrated. Apple continues relying on 94.5% overseas suppliers, while semiconductor giants like Intel and TSMC face delays in U.S. expansions. Economists warn tariffs risk inflating consumer prices without addressing systemic challenges in domestic manufacturing.
Strategic Response from China
While imposing matching tariffs, Beijing maintains open markets under multilateral frameworks like RCEP – exemplified by Germany's auto sector doubling sales in China compared to domestic figures. "Bullying tactics won't work," China's commerce ministry stated, referencing failed 2018 U.S. attempts to leverage small-parcel exemptions that primarily impacted low-income households.
Allies Push Back
The EU prepares retaliatory measures as France condemns "suicidal trade wars," while Japan labels the moves "deeply regrettable." Southeast Asian economies face particular strain, with Vietnam absorbing 46% tariffs despite supplying crucial tech components. A Hanoi economist noted: "The U.S. wants regional factories without competition – that equation fails."
As 85% of global trade flows through non-U.S. channels, analysts observe growing coordination among developing economies to uphold established trade frameworks against unilateral measures.
