Trump's Reciprocal Tariffs Ignite Global Market Turmoil

On April 3, President Donald Trump announced reciprocal tariffs on imports, starting with a base rate of 10% and significantly higher rates for countries like China (34%) and India (27%). Critics, including economists and trade experts, have condemned the simplistic formula used to determine these tariffs, which reportedly involves dividing the U.S. trade deficit with a country by its exports to the U.S., then halving that number. This method has drawn sharp criticism for its inaccuracies and potential negative impact on the U.S. economy, with experts warning it could lead to increased domestic prices and a burden on consumers. The tariffs are seen as part of Trump's broader protectionist agenda, which some believe will ultimately harm U.S. manufacturing and economic relations with allies. Despite previous tariffs, productivity in the steel sector has declined, with employment levels remaining low since 2018. Analysts suggest that such protectionist measures may push U.S. allies towards closer economic cooperation among themselves, undermining U.S. influence.