Antonio Agaton
Crimson Chronicle Reporter
Trump announced that on April 3, tariffs on virtually all countries would take effect. While he claimed that they were imposed with the aim to help American companies compete with other foreign companies coming into the United States, the tariffs have instead caused spontaneous conflicts around the world.
The most immediate impact was felt on the stock market. Within the past two days, the market lost a total of $5 trillion dollars according to MarketWatch. This marked the largest two day loss in the market’s history. All U.S. and foreign companies lost stocks, with the value of their companies degrading day by day. As a result of these tariffs, companies are increasing prices on their products to counter the tariffs, leaving consumers impacted. Instead of these companies taking on the tariffs themselves, they are passing on the burden.
Global political conflicts have also followed suit as a result of the tariffs. Many countries such as Canada announced that they will implement their own retaliatory tariffs on the United States.
“Canadians are always ready when someone else drops the gloves. So the Americans, they should make no mistake: In trade, as in hockey, Canada will win,” Canadian Prime Minister Mark Carney said in a speech to party supporters.
Many countries around the world believe that a trade war has happened, creating conflicts between the United States and its allies.
The tariffs have also affected the entirety of Europe, who are among the United States’ closest allies. Even those in Trump’s inner circle, such as Elon Musk, disagree with the placement of tariffs on the European Union. Musk believes that there should be a free trade agreement between Europe and the United States as they are close allies with each other and believes no conflicts should arise between them from these tariffs.
“I hope it is agreed that both Europe and the United States should move, ideally, in my view, to a zero tariff situation, effectively creating a free trade zone between Europe and North America,” said Musk at an event hosted by Italian Deputy Prime Minister Matteo Salvini.
These tariffs may bring the end to an era of globalization. Trump has asserted that he wants more jobs in America rather than in foreign countries. He believes that these tariffs will entice foreign countries to create manufacturing jobs in the United States rather than from other countries and get imported into the United States.
“The era of globalization has ‘ended’,” said British Chief Secretary of the Treasury Darren Jones soon after the tariffs were implemented.
Currently, there have been anti tariff and anti-Trump protests across the world. Investors will continue to monitor the impacts tariffs will have on the stock market going forward. Developments are expected to come in the coming days and months as worries about political tensions rise and concerns about the impacts further actions from Trump will have on the nation.
