President Donald Trump’s new tariffs on imports have sent shockwaves through the global economy. The US began collecting a 10% “baseline” tariff on all imports on Saturday. Trump urged Americans to “hang tough” after market turmoil caused by the tariffs.
The UK, France, and hundreds of other countries are impacted by the tariffs. China, hit hardest by Trump’s tariffs, announced a significant retaliatory response with 34% tariffs on US imports. British Prime Minister Sir Keir Starmer and French President Emmanuel Macron agreed that a trade war was in nobody’s interests, but nothing should be off the table in response.
All three major US stock indexes plunged more than 5% on Friday, marking the worst week for the US stock market since 2020.
Global economic turmoil extends worldwide
The FTSE 100 in the UK fell almost 5%, its steepest decline in five years.
Asian markets also dropped and exchanges in Germany and France faced similar declines. Trump described the market volatility as “an economic revolution” which the US “will win.” His policy changes have sent shockwaves through global supply chains. The White House has yet to comment on protests against Trump’s policies that took place in Washington DC and across the US on Saturday.
The impact on trade since the tariffs came into place has been palpable. The UK is working to address the new trading terms as part of its response. Billionaire Elon Musk, a close ally of Trump, said the US and Europe could move towards a “zero-tariff situation” which could create “a free-trade zone between Europe and North America.”