Today, these things took place:
We’re going to close this live page soon, so let’s go over the day’s most important events:
Trump finally unveiled his long-awaited “Liberation Day” trade plan on Friday. He said that all US imports would be subject to a 10% tax, and dozens of countries would face higher tariffs.
In response, China and the EU said they would take “countermeasures,” which made people worry that a global trade war would get worse.
Stocks around the world dropped sharply because many investors were shocked by how big Trump’s taxes were.
Champagne might be one of France’s most well-known goods.
Champagne from France is sold all over the world, but the US is where it sells the most.
These 20% taxes are causing a lot of worry among producers in this area. The head of one of the biggest wine houses here has already told us that they really want the European Union to stop making the trade war worse.
They’re scared that Trump might make those taxes even higher. It is said that this business is worth about $2bn a year, but they think they could lose about $800m.
Big losses for the people who make things here, and of course that has effects on everyone who works in the area and in the business.
The US could lose 30% of its exports to China and 1.3% of its GDP if tariffs are put in place.
Kaiyuan Securities in China said that new taxes could cause the world’s second-largest economy’s gross domestic product (GDP) growth to slow by 1.3% percentage points.
The stockbroker also said that China’s exports to the US could drop by as much as 30% and its total exports by more than 4.5%.
Trump’s most recent round of tariffs added a 34% blanket tax on Chinese goods. This is on top of the 20% tariffs that have been added since he took office in January.
This number is close to the 60% that the US president said he would get last year while campaigning.
Reuters talked to finance professor Zhiwu Chen at HKU Business School. He said that if the taxes stay in place, China will not be able to reach its 5 percent growth goal for 2025.
“China will not be able to get out of this deflationary situation for a long time.” “There is no doubt that this new tariff increase is making things worse,” he said.
The tariffs were called “an all-around blockade against China” by Yuan Yuwei, head of a hedge fund at Water Wisdom Asset Management.
Leave a Reply