US President Donald Trump has sparked a global trade war by imposing tariffs on major trading partners, including China, Mexico, Canada, and Japan. The move has sent shockwaves through financial markets, with hundreds of billions of dollars in stock values evaporating.
The White House claims the tariffs will boost American manufacturing and return prosperity to ordinary workers. However, analysts predict the opposite: a recession is looming, and inflation is likely to rise. JP Morgan has boosted its odds on a global recession to 60%.
Critics from across the aisle have condemned Trump’s actions as “economic self-sabotage.” Even some Republican lawmakers are at odds with the President’s plan. The Canadian prime minister called the US moves a “tragedy” for 80 years of free trade.
Trump remains unfazed by market volatility and criticism, saying it’s a “great time to get rich.” His advisors claim he’s determined to secure his legacy, no matter the cost.
However, some former Trump economic officials have expressed doubts about the feasibility of returning the US to an era of manufacturing self-sufficiency. The financial markets will likely continue to convulse in the coming weeks as the full impact of Trump’s tariffs becomes clear.
Source: https://www.theguardian.com/us-news/2025/apr/06/trump-tariffs-american-era-uncertainty