Reciprocal tariffs mark President Donald Trump’s aggressive push to penalize nations he claims have exploited U.S. trade.
Markets in Freefall
- S&P 500 nears a bear market, falling 20% from its recent high.
- Japan’s Nikkei drops over 3%.
- South Korea’s won hits a 16-year low.
- U.S. stock futures continue to slide.
Trump has sent mixed messages, calling the tariffs both “permanent” and a negotiation tactic. Talks with South Korea, Japan, and Italy are scheduled, and Vietnam’s deputy PM is set to meet with Treasury Secretary Scott Bessent.
China Retaliates
In response to China’s counter-tariffs, Trump nearly doubled duties on Chinese imports. Beijing has vowed to fight what it calls economic “blackmail.”
Chinese brokerages have intervened to steady markets, but economists warn of rising prices for American consumers on everything from sneakers to wine.
Domestic Impact and Outlook
- New tariffs exempt in-transit goods arriving by May 27.
- Reuters/Ipsos poll: 74% of Americans expect prices to rise.
- EU, Japan, and others face steep new levies, including a 20% duty on EU goods.
Trump accuses these countries of using unfair trade barriers and currency devaluation, although Tokyo denies such actions.
Reciprocal tariffs may soon hit pharmaceuticals, as Trump hinted at “major” duties on previously exempt drug imports.
Source: USA Today
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