Trump Enforces Major Tariffs, Sparks Trade War With No Negotiations

Donald Trump has initiated a trade war, imposing significant tariffs on China, the EU, and other major partners. A 104% tariff on Chinese imports marks a shift from decades of trade liberalization, potentially reshaping global trade dynamics.

Markets responded negatively, with US stock futures, bonds, and Asian equities declining sharply. The S&P 500 has seen a loss of approximately $6.2 trillion in value since the announcement, and oil prices have dropped to four-year lows amid fears of an economic slowdown.

Trump remains resolute, asserting that the US does not require new trade deals and positioning himself as a defender of American workers. His approach has generated internal discord, with criticism from figures like Elon Musk and concerns over inflation and recession risks.

Internal divisions are emerging. While Treasury Secretary Scott Bessent pushes for negotiations, Trump's trade advisor Peter Navarro opposes this direction. Some Republican allies are also expressing reservations about Trump's protectionist policies.