Washington, April 2 — A sweeping decision by U.S. President Donald Trump’s administration to impose large-scale import tariffs has triggered a chain reaction across global markets. Stock exchanges are registering record declines, and the world’s largest economies — from China to the European Union are preparing retaliatory measures. Within expert circles, concerns are growing over the potential onset of a new global economic crisis.
The Tariff Blow: What the U.S. Has Introduced
According to a statement posted on the official White House website, on April 2, President Trump signed an executive order imposing a baseline 10% tariff on all imports into the United States. In addition, “reciprocal” or “mirror” tariffs of up to 50% have been established for certain countries. The baseline tariffs take effect on April 5, with the reciprocal tariffs coming into force on April 9.
The list of countries subject to the new tariffs includes dozens of nations: Cambodia – 49%, Laos – 48%, Madagascar – 47%, Vietnam – 46%, Myanmar and Sri Lanka – 44% each, Serbia – 37%, Thailand – 36%, Bangladesh – 34%, Taiwan and Indonesia – 32% each, Switzerland – 31%, South Africa – 30%, Pakistan – 29%, South Korea – 25%, Japan and Malaysia – 24% each, Israel and the Philippines – 17% each, and the UK, Brazil, Singapore, and Chile – 10% each.
Separately, 50% tariffs were announced for Lesotho and the French overseas territory of Saint Pierre and Miquelon.
“April 2, 2025, will go down in history as the moment American industry was reborn. America will thrive again,” President Trump declared in a celebratory speech.
The Goals Behind the Tariff Policy: From Trade to National Security
President Trump explained that the purpose of the new tariffs is to restore economic fairness. He accused foreign nations of decades of “economic abuse” toward the United States and argued that such measures are necessary to protect American workers and industries.
According to Trump, the U.S. has endured a “monstrous imbalance” in trade relations for decades, especially in the automotive sector. For instance, when the U.S. imposed a 2.5% tariff on car imports, other countries, he claimed, were imposing tariffs of up to 70%.
“Now it’s our turn to prosper. We’ll use the newly raised funds to cut taxes and pay down debt,” the president noted.
Stock Markets React Instantly: April’s “Black Monday”
The new tariffs sparked an immediate reaction on global stock markets. Germany’s DAX plunged 10%, France’s CAC 40 lost 6.5%, the UK’s FTSE 100 fell 6%, and Japan’s Nikkei dropped 9%.
China’s stock market plummeted by 13.74%, while Hong Kong’s Hang Seng Index fell 13.12%. U.S. index futures also declined, with the Nasdaq down 5.4% and the S&P 500 off 3.84%.
Experts have already compared the decline to the “Black Monday” crash of 1987, when the Dow Jones plunged a record 22.6% in a single day.
Analysts identify the U.S. tariff announcement as the primary trigger behind the collapse.
U.S. Facing an Economic Storm of Its Own Making?
Despite the administration’s rhetoric, the reaction from the business and financial sectors within the U.S. has been largely negative. Billionaire investor Bill Ackman, a former Trump supporter, harshly criticized the tariff policy, calling it an “economic nuclear winter.”
“We’ve launched an economic war against the entire world simultaneously, and it has shattered trust in the U.S. as a trading partner,” he wrote on social media.
Ackman also warned that the consequences would be particularly painful for low-income Americans, who are already under economic strain.
Companies operating in global markets have been hit especially hard. Nike shares dropped 12%, and Dell’s stock plummeted 20%.
Analysts expect the tariffs to inevitably drive up the cost of goods, as they impact production costs rather than final prices. This, in turn, could suppress consumer demand.
Global Reactions: From Condemnation to Retaliatory Tariffs
Russia
Although Russia was not directly targeted by the new tariffs, its stock market still reacted to the global instability. The MOEX index has fallen for 13 consecutive sessions — a record decline in its history. On April 7, it failed to break through the 2,700-point mark.
China
China is subject to a 34% tariff. In response, Beijing immediately imposed symmetrical tariffs on all U.S. imports and restricted the export of rare earth metals.
The White House responded by threatening additional measures if China does not reverse its actions by April 8. The next day, Washington announced new tariffs of 104% on Chinese goods.
The Chinese government condemned the U.S. actions as “a flagrant violation of international norms” and vowed to defend its interests by all available means. Experts warn that a full-blown trade war between the world’s two largest economies could destabilize the entire global system.
European Union
The EU’s response was less aggressive than China’s but still expressed serious concern. Brussels accused Washington of breaching international obligations and stressed the need for reciprocal action.
However, internal divisions emerged within the EU. Germany and France called for strong countermeasures, including new tariffs and investment restrictions, while Italy preferred to remain neutral.
Despite the U.S. abandoning the idea of “zero tariffs,” the European Commission hopes to avoid a direct trade conflict, according to Reuters.
Economists note that in the event of escalation, export-oriented EU economies — particularly Germany, Ireland, Italy, and France — stand to lose the most.