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Trump just triggered a global trade brawland markets are already flinching. At 12:01 a.m. Wednesday, his sweeping tariffs kicked in: a brutal 50% hit on Chinese goods, stacked on top of earlier 34% duties, bringing the total rate to 104%. China immediately struck back, jacking up its own tariffs on U.S. imports to 84%. This follows Trump's April 5 moveslapping a blanket 10% tariff on everything entering the U.S.and now 184 other trading partners are in the crosshairs too. It's a full-scale tariff tsunami, and the global economy just got soaked.
Early casualties? Delta Airlines (NYSE:DAL) pulled its guidance. Tesla (NASDAQ:TSLA) could take a direct hit, given its deep exposure to global supply chains. Canada has slapped tariffs on U.S. autos. The EU is rolling out its own countermeasures. And while Trump insists foreign leaders want to talk, several Southeast Asian countries are still waiting by the phone, as one official put it. Japan and South Korea are in touch, but clarity is scarce. Most countries are reacting by hiking prices and rethinking trade routes.
For investors, this isn't business as usualit's whiplash. Wall Street is pushing back. Billionaires are sounding alarms. But unless there's a dramatic pivot, this trade war is just getting started. With political pressure mounting and no clear strategy from the Trump camp, expect more volatility aheadespecially in autos, tech, and consumer goods.
This article first appeared on GuruFocus.