As of 12:01am EST on Wednesday, President Trump’s “reciprocal” tariffs will take effect, escalating a global trade war that has unsettled stock markets and caused concern among businesses. Mr. Trump has consistently threatened tariffs on US trade partners, with some duties on steel and aluminum already in place. The April 2 announcement of the “Liberation Day” tariffs against numerous countries led to a sharp decline in stock markets. Despite more than 70 countries expressing interest in negotiations, White House Press Secretary Karoline Leavitt stated that Trump has no plans to delay the tariffs. Analyst Gary Hufbauer expects the tariffs to proceed as planned, predicting further stock market declines and rising consumer prices. Rachel Ziemba, an expert on security issues, forecasts continued negotiations even as Trump enforces tough tariffs, though she notes that his insistence on eliminating trade deficits may hinder deal-making. Economists agree that consumer prices will rise, with the extent of the increase being the topic of debate. Amidst this, China remains under close scrutiny as it is expected to significantly retaliate to the additional 50 percent tariffs imposed by Trump, potentially leading to a drastic increase in import taxes on Chinese goods to 104 percent. The worldwide repercussions and possible shifts in global trade agreements will be closely monitored as countries such as the European Union and Canada respond with countermeasures, while Japan, South Korea, and Vietnam choose to negotiate with the US. The outcome of these trade talks will be crucial, offering insight into whether Trump’s tariffs are part of a broader strategy or a temporary maneuver. Investors are advised to be cautious and not make hasty investments amid this uncertain climate.

Source: https://www.aljazeera.com/economy/2025/4/9/what-to-watch-for-as-trumps-reciprocal-tariffs-kick-in?traffic_source=rss