-
What are the latest tariffs imposed by the US and China?
As of April 9, 2025, China has announced a 34% tariff on US imports in response to increased tariffs from the US. This follows President Trump's earlier tariffs on steel and aluminum. The EU has also imposed retaliatory tariffs on €21 billion worth of US goods, targeting products from Republican states, starting April 15.
-
How are these tariffs affecting the US economy and household incomes?
Former Treasury Secretary Larry Summers has warned that the tariffs could lead to a recession, predicting a potential loss of $5,000 in income per household and an increase of two million unemployed Americans. The stock markets are reacting negatively, raising concerns among economists about the broader economic impact.
-
What are the potential long-term effects of the trade war on global markets?
The ongoing trade war could lead to significant disruptions in global supply chains and increased prices for consumers. Economists fear that prolonged tariffs may mirror historical events like the Smoot-Hawley tariffs, which deepened the Great Depression, potentially leading to a recession and economic distress worldwide.
-
How is the EU responding to US tariffs?
The EU has approved retaliatory tariffs on US goods, emphasizing a preference for negotiated solutions despite escalating tensions. The EU's strategy includes a phased approach to tariffs, aiming to counter US tariffs while minimizing economic harm to its own citizens and businesses.
-
What is the political response to Trump's trade policies?
Trump has faced criticism from within his own party, with Republican lawmakers advocating for Congress to take control of trade negotiations. The Trade Review Act, co-sponsored by several senators, seeks to require congressional approval for new tariffs, reflecting growing concern about the economic impact of Trump's tariffs.
-
What are China's countermeasures against US tariffs?
In response to US tariffs, China has implemented export controls on rare earth minerals and has firmly stated its readiness to retaliate further if the US escalates trade restrictions. This highlights the complexities of the ongoing trade conflict and the challenges both nations face moving forward.