tariff war

Almost everything can be made everywhere, thanks to mobility of enterprise & science. Trump’s tariffs will only mean that the same goods come to US under different names, through other routes

US President Donald Trump's tariff war has rocked global markets and could trigger significant shifts in the world order. Initially dismissed as a mere threat during his campaign, the tariffs unleashed by Trump from the White House have escalated, with China and other countries retaliating. These economic measures, while targeting rivals, may also escalate geopolitical tensions, raising fears of a larger conflict.

China retaliated against the US tariff hikes by increasing its own levies on American imports to 125%, while simultaneously expressing a willingness to engage in dialogue with Washington to resolve the trade dispute. Despite the tariff increase, China asserted that further US tariffs would be economically illogical and vowed to take firm countermeasures to protect its interests. Beijing emphasized that any negotiations must be based on equality and mutual respect.

Donald Trump paused tariffs on most nations but increased levies on China. China retaliated and called for mutual respect in dialogue. The trade war threatens global supply chains and economic stability. Xi Jinping prepares for long-term confrontation, reducing reliance on the US. Both countries face economic pain, but neither leader is willing to back down. The situation is a deadlock.

Equity markets are bracing for a volatile, holiday-shortened week, influenced by US-China trade war developments and key Q4 earnings from Indian giants like Wipro and Infosys. Investors will closely monitor global cues, foreign investor activity, and inflation data. Market sentiment will also be affected by rupee-dollar movements and Brent crude oil prices amid significant global economic data releases.

Donald Trump's new "reciprocal" tariffs, now at 104% on Chinese goods, have triggered a global trade war, disrupting markets and sparking recession fears. This layered tariff approach, starting with duties related to fentanyl and escalating with retaliatory measures, has sent stock markets plummeting and is expected to raise consumer prices.

"At present, China's exports are facing a complex and severe external situation, but 'the sky will not fall'," the spokesperson said, news agency Reuters. He also stated that China is "actively building a diversified market, deepening cooperation with all parties in the supply chain," and added, "Importantly, China's domestic demand market is broad."

Singapore has lowered its 2025 GDP growth forecast to 0-2% due to the anticipated impact of US tariffs on global trade. The Monetary Authority of Singapore has eased monetary policy in response to economic concerns stemming from the US-China trade war. The trade war is expected to negatively affect global trade, economic growth, and business sentiment.

Hit by the US-China tariff war, Chinese electronics component manufacturers are reducing prices by up to 5% as Indian companies negotiate new contracts. This could lead to 2-3% savings for Indian manufacturers of fridges, TVs, and smartphones, potentially lowering consumer prices. While India heavily relies on Chinese components, local production incentives and rising import duties are pushing for domestic manufacturing.

A UN trade official warns that escalating US tariffs and China's retaliation could shrink global trade by 3%, prompting shifts in export flows towards emerging economies like India and Brazil. The tariff war is causing supply chain reorientation, impacting developing nations reliant on sectors like textiles. Experts suggest China is strategically positioning itself for long-term advantage amidst the trade tensions.

Amidst US-China trade tensions, India's telecom department has directed operators like Airtel and Jio to detail Chinese equipment in their networks, raising security concerns. While Chinese firms maintain existing 4G infrastructure, they're barred from 5G rollouts and new contracts.

President Trump called on Americans to “BE COOL” after China and the EU imposed retaliatory tariffs. His message came as US markets opened with mixed but slightly positive results. Despite global market instability and falling oil prices, Trump assured investors it’s a “great time to buy” and claimed world leaders are eager to negotiate.

Global financial markets experienced a significant downturn, erasing trillions in equity value due to President Trump's tariffs. Major indices entered bear market territory, with stocks, commodities, and crypto plummeting as investors sought safety in Treasuries and the yen. Recession fears are escalating, prompting market volatility and concerns about the Federal Reserve's response.

Tensions escalate between the US and China as a tit-for-tat tariff war decimates their $600 billion trade. MAGA hardliners push for delisting Chinese companies, confiscating assets, and revoking student visas, while Beijing seeks international support against US tariffs. Experts warn Trump's approach may backfire, with some seeing the US as a global destabilizer amid weakening market confidence.

President Xi Jinping, during his Southeast Asia tour, cautioned against protectionism, emphasizing that trade wars benefit no one. His visit to Vietnam, Cambodia, and Malaysia aims to strengthen regional ties amidst US tariff impacts. Xi urged Vietnam to uphold multilateral trade and stable global supply chains, positioning China as a reliable partner compared to the US.

China is standing firm in its trade dispute with the US, asserting its economic resilience and denouncing what it views as American bullying. Despite retaliatory tariffs and efforts to diversify trade, the US-China trade relationship remains substantial, though the trade deficit has widened. The tariffs are causing disruptions for businesses, with some facing increased costs and supply chain challenges.