Trump has launched a “trade war” against all countries, which could lead to a market collapse

President Trump signed an executive order declaring a national economic emergency in the United States to implement his announced customs reform, which is supposed to improve the US trade deficit. In effect, Trump started "trade" wars simultaneously with all countries, imposing tariffs ranging from 10% to 50% on imports of goods into the US, depending on the country of origin.

A 10% tariff is imposed on all imported goods, with a 25% duty on all cars imported into the US. The highest rates are imposed on major trading partners: goods from China – 34%, from the EU – 20%, India – 26%, Vietnam – 46%, Taiwan – 32%, Japan – 24%, South Korea – 25%, Thailand – 36%, Switzerland – 31%, Indonesia – 32%, Malaysia – 24%, Cambodia – 49%, the UK – 10%, South Africa – 30%, and from Lesotho in Africa and the French overseas possession of Saint-Pierre-et-Miquelon, located off the coast of Canada, – 50%. Goods from Ukraine will be subject to a 10% tariff, while goods from the Russian Federation, Belarus, Cuba, and North Korea were not subject to tariffs, as the White House believes that the tariffs imposed against these countries are already "too high" and trade with them is limited by sanctions. Mexico and Canada are also not subject to new restrictions, as Trump has already imposed tariffs on them before.

The base tariff of 10% will take effect on April 5, and increased duties for countries with which the US has the "largest trade deficit" will begin to apply on April 9. At the same time, the US President reserved the right to determine when the "threat" from the trade deficit will pass and it will be time to abolish the increased duties.

The charts Trump showed showed tariffs that the country applies against American goods in the first column, and tariffs imposed by the United States in the second. Trump said that he imposed half the tariffs, so he hopes that other countries will not impose additional tariffs on goods from the United States.

However, one should not expect a lack of global reaction to Trump's new policy, as China and the EU have previously promised to impose new tariffs on goods and services from the US. Therefore, global markets will soon face a significant reformatting.

Trump announced the imposition of tariffs after the stock exchanges closed, so we will see the main reaction of the markets today, and it will be expressed in a sharp drop in US and other countries' stock indices, as traders expected tariffs of an average of 10%. A significant drop in prices for raw materials is also possible, due to the breakdown of trade relations between the world's largest economies, the US, China and the EU.