President Trump urged Americans to “hang tough” as a 10% tariff on all imports took effect on Saturday. The tariffs led to market turmoil, with major US stock indexes plunging more than 5% on Friday. The S&P 500 dropped nearly 6%, marking the worst week for the US stock market since 2020.
The UK and France are among the countries affected by the tariffs. British Prime Minister Sir Keir Starmer and French President Emmanuel Macron agreed that a trade war would benefit no one but left all options on the table. They also expressed concerns about the global economic and security impacts, particularly in South East Asia.
China, the world’s second-largest economy, was hit hardest by Trump’s tariffs.
Hang tough amidst tariffs
Beijing responded by imposing 34% tariffs on US imports and filed a complaint with the World Trade Organisation.
China’s foreign ministry urged the US to “stop using tariffs as a weapon to suppress China’s economy and trade.”
In the US, around 1,200 demonstrations took place on Saturday, marking the largest single day of protest against President Trump since his second term began. The White House has yet to comment on the protests. Elon Musk, a close ally of Trump, suggested that the US and Europe could move towards a “zero-tariff situation,” potentially creating “a free-trade zone between Europe and North America.” His comments came just days before the Trump administration introduces tariffs of up to 50% on certain goods by April 9, specifically targeting what it calls the “worst offenders” for trade imbalances.
The EU is slated to face a 20% levy. The impact on trade since the tariffs took effect has been significant, with the UK working to address the new trading terms. Trump described the market volatility as “an economic revolution” and assured that the US would ultimately prevail.
“Hang tough, it won’t be easy, but the end result will be historic,” Trump stated in a post on Truth Social.