Author: The New York Times
Published on: 03/04/2025 | 00:00:00
AI Summary:
China and Europe Vow to Respond to Trump’s Tariffs Investors’ shock at the size of the levies sent markets in Asia sharply lower. China vowed to take countermeasures to “safeguard its own rights and interests.” Its state media described the tariffs as “self-defeating bullying” Trump framed his policies as a response to a national emergency, saying tariffs were needed to boost domestic production. Others in the United States were less enthusiastic about what lay ahead. He said, “Trump has chosen to blow up the system governing international trade” The European Union's tariff was set at 20 percent, Japan's at 24 percent and India’s at 26 percent. Prime Minister Keir Starmer of Britain said negotiations toward a trade deal with the U.S. Would continue and did not suggest any immediate retaliation. The Trump administration imposed a 10 percent tariff on Britain, which the government took as a favorable sign. Trump said U.S. Imports from Japan would face a 24 percent tariff. Last week, he said that cars, Japan’s top export to the United States, would be subject to a 25 percent tax. Japanese officials have refrained from talking about a similar move. April 3, 2025, 3:46 a.m. ET1 hour ago Reporting from New Delhi The United States is Bangladesh’s largest export destination, with over $8 billion in exports last year, largely of garments. Officials in Bangladesh, which is trying to emerge from a political crisis that has choked its economy, said they are reviewing tariffs on products from the United States. April 3, 2025, 3:22 a.m. ET2 hours ago Reporting on European business France’s government spokeswoman provided some detail about how the European Union could respond to the new tariffs. The E.U.’s response could also include reviewing access of U.S. Companies to procurement contracts in Europe, she said. Europe will continue to negotiate with the United States but is ready to use retaliatory measures if necessary. April 3, 2025, 2:20 a.m. ET3 hours ago The office of President Emmanuel Macron of France said that he would meet with representatives of industries affected by the new tariffs later in the day. ET3 hours ago Reporting from New Delhi The garment industry in Sri Lanka manufactures for some of the largest brands in the United States. Industry officials there are alarmed that the new tariffs will make it nearly impossible to compete in the garment manufacturing market. The next three months are due to be unusually hot, the Indian meteorological department said this week. “There are no winners in a trade war,” the commerce ministry said. The tariffs on China have likely dimmed hope of a meeting between the country’s top leader, Xi Jinping. The shutdown begins on Monday, and the company said the tariffs were the primary factor in the decision. The assembly plant is the largest employer in Windsor, which sits across a river from Detroit. Stellantis did not immediately respond for requests for comment. In February, I wrote about how President Trump’s earlier tariffs set off anger and worry in the city. Reporting from Seoul Ursula von der Leyen said the European Union is ready to respond to the tariffs. It’s just after 5 a.m. In Brussels, where she is speaking from. White House officials said the figures were calculated by the Council of Economic Advisers using well-established methodologies. The official added the model was based on the concept that the trade deficit that we have with any given country is the sum of all the unfair trade practices and “cheating” that country has done. Futures on the S&P 500 slumped over 3 percent. Asian markets fell sharply, with benchmark indexes dropping more than 3 percent in Japan and nearly 2 percent in Hong Kong and South Korea. Mr. Trump announced a new 10 percent base line tariff on all imports. The U.S. Tariff rate on all imports is now around 22 percent, from 2.5 percent in 2024. Through Wednesday, the S&P 500 had fallen 7.7 percent below its most recent peak in February. From that peak on Feb. 19 through the end of March, 10 of 11 sectors have fallen. The Nasdaq Composite index has tumbled even further, down 13 percent since its peak in December. Japan’s Nikkei 225 index is down more than 13 percent this year. Signs of worry have also been evident in the rapid rise in the price of gold. Investors have flocked to the precious metal, sending it 19 percent higher in the first three months of the year, its biggest quarterly rise since 1986. In a ceremony at the White House on Wednesday, Mr. Trump unveiled his most expansive tariffs to date. They included a 10 percent rate on all countries except Canada and Mexico. The announcement came hours before tariffs on all foreign-made cars went into effect. A tariff is a government surcharge on products imported from other countries. China began imposing retaliatory tariffs in March on farm products from the United States. They included 15 percent tariffs on U.S. Imports of chicken, wheat, corn and cotton. Mexico made a major effort to fend off tariffs, sending more than two dozen accused cartel leaders to the united States to face criminal charges. A new system of “reciprocal” tariffs is a way to stop America from being “ripped off” by the rest of the world. The president has also maintained that tariffs will rake in huge sums of revenue that the government can use to pay for tax cuts and spending. Some Trump officials said they were intended to spur crackdowns on illicit drugs, specifically fentanyl. In 2023, nearly three-quarters of U.S. Agricultural imports from Mexico consisted of vegetables, fruit, beverages and distilled spirits. It could take longer for prices to rise for durable goods, like cars, because of existing inventory, or if companies expect the tariffs to be temporary. The Yale Budget Lab estimated that Mr. Trump’s new auto tariffs, which are scheduled to take effect on Thursday, would raise vehicle prices 13.5 percent on average. Nearly half of all vehicles sold in the United States are imported. That’s because over the past three decades, American and foreign-owned automakers have built supply chains. For example, the 2024 Chevrolet Blazer is assembled at a plant in Mexico. Donald Trump’s tariffs are likely to raise the costs of building renewable energy projects in the United States, analysts say. Small Violin Parts, Big Problems: A family business in Ottawa that makes special shoulder rests for violins imperiled by both Trump's tax on Canada and potential Canadian retaliation. Israeli Duties on U.S. Imports: In an apparent bid to ensure that it is exempt from a new wave of levies that Trump is set to announce, Israel’s government
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