Global markets experienced a great deal of uncertainty following President Donald Trump’s announcement to impose tariffs on a host of countries to “increase our competitive edge.”
In a press release, the White House announced plans to declare a National Emergency to “strengthen the international economic position of the United States and protect American workers.”
In the release, Trump announced plans to levy a “10% tariff on all countries.” The tariffs would also be adjusted to individual countries, with the release stating, “President Trump will impose an individualized reciprocal higher tariff on the countries with which the United States has the largest trade deficits.”
The tariffs would impact key U.S. allies like the countries of the European Union and the United Kingdom, as well as major trading partners like China. Investor fears led to significant sell-offs in the stock market and increased fears of a recession.
The Dow Jones Industrial Average went down by over 5,000 points between April 2 and April 7, with massive losses in individual stocks. The S&P 500 lost nearly 1,000 points during the same time period.
Locally, the Leon County Democratic Party expressed its disdain at President Trump’s decision, posting on Facebook, “Donald Trump is damaging America.”
Trump attempted to calm investor concerns by posting on Truth Social that “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
On Wednesday, Trump announced a 90-day pause on the tariffs for all countries except China, deciding to raise the tariff imposed on Chinese imports to over 125%.
In the announcement Trump says, “Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.”
The President posted on Truth Social, stating that “based on the fact that more than 75 Countries have called Representatives of the United States… I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
Stocks Surged following this announcement, with the Dow Jones Industrial Average gaining over 2,000 points on Wednesday alone and the S&P 500 gaining nearly 500 points. Despite this surge in the indexes, they have still not fully recouped the losses incurred following Trump’s April 2nd Tariff announcement.
China has introduced retaliatory tariffs, raising them to over 84% on U.S. imports, and the full economic consequences of the ongoing trade war are yet to be seen. The Leon County Democratic Party again decried the escalating trade war, stating, “Donald Trump is crushing American global leadership and leading to a Chinese-led world.”
The tariffs will likely impact the costs of Chinese-produced goods, which many rely on, with the U.S. Census Bureau listing that over $400 Billion of Chinese goods were imported to the U.S. in 2024.