Trump's Global Tariffs Take Effect, Shock Markets

President Trump's sweeping tariffs, which began on April 5, have introduced a baseline 10% import tax on nearly all countries, with specific penalties for those deemed to have 'unfair' trade practices, such as a 20% tariff on the EU and a total of 104% on certain Chinese imports. Trump has defended these tariffs as necessary measures to rectify longstanding trade imbalances, claiming that countries are now eager to negotiate favorable terms with the U.S. However, the immediate aftermath has seen global stock markets plummet, with significant losses reported across U.S. indices. In retaliation, China and the EU have announced their own tariffs on U.S. goods, escalating tensions further. Critics warn that the U.S. risks economic isolation and a potential global recession as trade relations sour. Mixed signals from the Trump administration suggest that these tariffs could either be permanent or part of a broader negotiation strategy to reshape international trade dynamics.