Trump imposes new tariffs on China and EU, sparking retaliatory measures and market volatility

From Investing.com: 2025-04-10 05:24:00

US President Donald Trump announced new tax tariffs on goods imported from around the world, with China facing a 34% rate and the EU facing 20%. The move aims to increase competition and lower prices for US consumers, with a 25% tariff also imposed on imported cars. JPMorgan CEO Jamie Dimon warns of price increases due to tariffs, urging a swift resolution to avoid economic disintegration.

China plans to respond to the US tariffs with a 34% customs duty, prompting Trump to announce an additional 50% tax increase. The Chinese Ministry of Commerce vows to resist further tariff hikes, criticizing the US for its coercive nature. Global markets experience volatility, with the S&P 500 seeing a significant turnaround and Elon Musk’s wealth dropping below $300 billion due to tariff impacts.

Tariffs are expected to hit American consumers hard, potentially increasing household costs by $3,800. The Anderson Economic Group estimates automobile tariffs could raise prices by $2,500 to $5,000 for American cars and up to $20,000 for imported models, costing consumers $30 billion annually. Inflation in the US is already above the Fed’s target, with tariffs likely to exacerbate the situation.



Read more at Investing.com: Trump’s Reciprocal Tariffs: The Boomerang Effect