Next Story
Newszop

Trump tariffs spark global alarm, incite fear of economic upheavals

Send Push
National Heraldpublisher-detail-arrow
04th April, 2025 15:19 IST

Sweeping new tariffs imposed by US president Donald Trump have and urgent calls for dialogue from leaders across the world, as markets reel and policymakers scramble to assess the fallout of what many are calling a major blow to global trade stability.

Announced during a briefing from the White House’s Rose Garden, Trump’s tariff regime — ranging from 10 per cent to as high as 49 per cent on imports from key trading partners — has triggered dismay in capitals from Brussels to Tokyo. He claims and end decades of what he described as unfair treatment of the US industry.

“For more than 50 years, taxpayers have been ripped off. That ends now,” Trump declared, likening the economic shock to a necessary medical operation.

“The markets are going to boom, the stock is going to boom, the country is going to boom,” he said, despite Wall Street experiencing its sharpest one-day drop since the Covid-19 pandemic.

EU denounces US move as a ‘major blow’

The European Union, which faces a new 20 per cent blanket tariff on its exports to the US — and even steeper duties on sectors such as vehicles, steel and aluminium — has expressed sharp regret, but stopped short of immediate retaliation.

European Commission president Ursula von der Leyen, speaking in Uzbekistan, warned of severe consequences for millions of people, however.

“Groceries, transport and medicines will cost more. And this is hurting, in particular, the most vulnerable citizens,” she said, describing the US action as a “major blow to the world economy”.

She spoke too of the feeling of being “let down” by Europe’s “oldest ally”.

Nevertheless, von der Leyen reiterated the bloc’s readiness to resume negotiations, a position echoed by other European leaders who cautioned against a full-scale .

Italian prime minister , who convened an emergency ministerial meeting to assess sectoral impact, said the tariffs were “a mistake” that served no side’s interest, though she also signalled that Europe must respond with unity and resolve.

Tech Giants in the crosshairs

France and Germany hinted at targeted countermeasures, particularly aimed at the US tech sector, where firms such as Google, Apple, Facebook, Amazon and Microsoft — collectively referred to as GAFAM — dominate. “We are considering digital service taxes as part of our response,” said spokesperson Sophie Primas.

President also had a word of advice for his US counterpart — in effect: “Trade imbalances cannot be fixed by tariffs.”

Outgoing chancellor warned that the EU could not merely issue statements of disapproval — but must act. “We must show that we have strong muscles,” he said. “But our goal remains a negotiated agreement — for prosperity in the US, Europe and the world.”

He added a ‘friendly’ warning, much like Macron, that Trump was making a big mistake — that he was “fundamentally wrong” to create a “lose–lose situation for both”.

Mixed reactions in the UK and Asia

British prime minister urged calm and diplomacy. “Nobody wins in a trade war. That is not in our national interest,” he told business leaders in London, stressing the UK’s intent to secure a trade deal with Washington to reverse the tariffs.

Then again, a is in a slightly better position than the EU nations — and way ahead of the key Asian economies of Japan, China and India.

UK is being hit with only 10 per cent of tariffs (the lowest common denominator in the Trump tariff plan) versus Europe's 20 per cent, Japan's 24 per cent, and China’s 34 per cent.

In Asia, ’s government said it would closely monitor the implications before considering its next steps, while has already begun consultations with industry stakeholders to “minimise damage” to exporters.

, for its part, vowed to take “resolute countermeasures” to defend its interests but did not elaborate on specifics. This is the , without .

Beijing’s response to previous tariff rounds included reciprocal duties on US agricultural exports and restrictions on key minerals, raising the prospect of a repeat escalation in trade tensions.

As for India, while on behalf of on the agricultural front, economists have suggested things may not be all that terrible — again, like with the UK, in comparison to how the competition will fare.

Indeed, former RBI governor called it .

Financial jitters and warnings of recession

Everyone around the wall may not be as lucky — or resilient.

Financial markets were certainly roiled by the announcement, with US stock futures plunging by over 3 per cent, Tokyo’s benchmark falling 2.8 per cent and oil prices slipping more than USD 2 a barrel.

Analysts described the move as a “seismic” policy shift.

“This is a game-changer not only for the US economy but for the global economy,” said Olu Sonola, head of US economic research at Fitch Ratings. “Many countries will likely end up in recession.”

Stephen Innes of SPI Asset Management called the speed and scale of the rollout a “full-throttle macro disruption”, while the Deutsche Bank described it as a “radical policy reordering” and noted that the US now has an average import tariff of 25-30 per cent — levels not seen since the early 20th century.

Confusion in unexpected places

Even far-flung regions were caught in the crossfire — or just bemused.

Norfolk Island, a remote Australian territory with a population of just 2,000, was stunned to find itself subject to a 29 per cent tariff.

“To my knowledge, we do not export anything to the United States,” said George Plant, the ’s representative on the island. “We’re scratching our heads here.”

Trump unfazed by market shock

Despite the global backlash and steep market declines, Trump remained defiant. Speaking to reporters aboard Air Force One en route to a golf event in Florida, he reiterated his belief that the tariffs would ultimately restore balance and bring back investment.

“This is an operation. Sometimes there’s pain. But we’re going to be stronger for it,” he said. “The rest of the world wants to know if there’s a deal to be made — and I’m listening, if it’s phenomenal.”

As governments worldwide weigh their options and consult with industry leaders, a key question looms: Will Trump's shock tariffs force a reset of global trade terms — or unleash a destabilising economic backlash?

With agency inputs

You may also like

NewsPointGenZNewsPointVideosNewsPointGamesNewsPointCricket
Loving Newspoint? Download the app now