Trump’s Trade War Intensifies – Is a Global Economic Crash Coming?

By / / Crypto News, Daily News
Trump’s Trade War Intensifies – Is a Global Economic Crash Coming?
Table Of Contents
  1. US Tariffs Spark Retaliation – What’s Next for Global Trade?
  2. Trump’s New Tariffs: The Latest Developments
  3. The Role of the Fentanyl Crisis in US Trade Policies
  4. US-Canada Trade Relations Under Pressure
  5. China’s National People’s Congress Weighs In
  6. Crypto Market Takes a Hit Amid Trade War Uncertainty
  7. What’s Next for the Global Economy?

US Tariffs Spark Retaliation – What’s Next for Global Trade?

The US-China trade7 war is intensifying as former President Donald Trump ramps up tariffs on key global trading partners, prompting swift retaliation. With Canada, China, and Mexico imposing countermeasures, global trade is now at a crossroads.

Trump’s New Tariffs: The Latest Developments

As of midnight on Tuesday, the US has imposed a 25% tariff on goods imported from Canada and Mexico and a 10% tariff on imports from China. These drastic measures have triggered an immediate response:

  • China is hitting back with 15% tariffs on key US exports, including wheat, corn, chicken, and cotton. Additional 10% tariffs will apply to soybeans, sorghum, fruits, vegetables, dairy, fish, pork, and beef, effective March 10.
  • Canada has announced tariffs of up to 25% on US goods.
  • Mexico will enact countermeasures by the end of the week, adding further tension to North American trade relations.

The Role of the Fentanyl Crisis in US Trade Policies

One of Trump’s key justifications for these aggressive tariffs has been the fentanyl crisis, particularly blaming Mexico and Canada for not stopping the flow of illegal opioids into the US. Chinese authorities, however, argue that Trump is using the fentanyl issue as a political cover for his trade war strategies.

In retaliation, China is blacklisting 10 US companies and adding 15 more to its export control list. Beijing is also filing a complaintq with the World Trade Organization (WTO) over the latest tariff hikes, signaling an escalating legal and economic battle.

US-Canada Trade Relations Under Pressure

Canadian Prime Minister Justin Trudeau has openly criticized Trump’s tariff policies, arguing they are making gas, groceries, and automobiles more expensive for Americans. He also warned that Canada could retaliate by cutting off electricity exports to the US and halting nickel shipments, a move that could cripple US manufacturing, given that 50% of America’s nickel supply comes from Ontario.

Trump’s argument remains that high tariffs will force companies to manufacture goods in the US, creating more jobs and strengthening the economy. However, critics argue that these policies are causing higher consumer prices and supply chain disruptions.

China’s National People’s Congress Weighs In

This week, China is holding its National People’s Congress, where top policymakers are discussing their strategy to counter Trump’s escalating trade war. Initially, China avoided hitting US agriculture with tariffs, but with the new 10% tariff in place, Beijing seems to be signaling a shift in strategy.

A senior economist at the Economist Intelligence Unit in Beijing stated, “China is making it clear: If the US doesn’t back down, they’re prepared to strike harder.”

Crypto Market Takes a Hit Amid Trade War Uncertainty

Financial markets are already feeling the impact. The crypto market saw an 8.64% decline in total market capitalization, dropping to $2.77 trillion in just 24 hours. Investors are closely monitoring whether further retaliations will drive Bitcoin and Ethereum lower or push traders toward decentralized assets as a hedge against economic instability.

Ben Kurland, CEO at crypto researchx firm DYOR.com, noted, “Bitcoin and Ethereum are holding steady while stocks slide, indicating that crypto traders likely priced in these macro risks ahead of traditional markets.”

What’s Next for the Global Economy?

As tensions rise, investors and businesses are bracing for more volatility. With additional tariffs on the table and potential legal battles at the WTO, the global economy faces uncertainty. The next few weeks will be critical in determining whether this trade war escalates further or if diplomatic negotiations can ease tensions.

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