Trump's Tariff Game:

🇺🇸 President Trump Escalates Trade Tensions with New Tariffs

U.S. President Donald Trump has once again shaken global markets by announcing new customs tariffs, mainly targeting China. However, this time his approach appears more “selective”: most of America’s allies have been temporarily exempted, while China once again becomes the main target.

This strategy seems to be an attempt to regain global leverage, especially amid ongoing economic and geopolitical challenges. Trade tensions have become a hallmark of Trump’s economic policy, and the current move is a continuation of the line he started back in 2018.

Now, with post-pandemic recovery and the global energy transition in full swing, such measures carry even broader consequences.

⚠️ Who’s Affected — and Who’s Not?

🇨🇳 China: Tariffs on Chinese goods have been raised to 125% and 145%, depending on the category. This is the sharpest escalation since the trade war began in 2018. The new measures cover over $250 billion worth of imports, with electronics, solar panels, batteries, semiconductors, and steel among the hardest-hit.

🌐 Other countries: The EU, UK, Japan, Canada, South Korea, and Australia have been granted a temporary “pause.” According to Trump, this is a goodwill gesture toward allies, with whom the U.S. aims to revise trade terms through negotiations rather than pressure.

🌍 How Countries and Markets React

🇬🇧 United Kingdom: Finance Minister Jeremy Hunt announced urgent talks with Poland, the Czech Republic, and Baltic states to build coordinated trade mechanisms and joint investment packages. London also proposed supply guarantees for critical goods to reduce reliance on Chinese supply chains, and initiated G7 consultations on a joint response in case of further escalation.

🇩🇪 Germany: German manufacturers voiced concern: tariffs on metals and auto parts will hurt exports. The BDI industry association warned that “this is not just about tariffs — it undermines the logic of global integration.” The Economy Ministry set up a crisis unit to prepare tax breaks and subsidies for affected companies.

🇪🇸 Spain: Prime Minister Pedro Sánchez met with business leaders and announced a national trade stabilization fund. Support measures for agriculture and textile sectors — especially those exporting to the U.S. — are under discussion. Madrid advocates strengthening the EU internal market and boosting local production.

🇫🇷 France: President Macron held phone talks with the German Chancellor and Italian Prime Minister, proposing a “European tariff shield.” Subsidies for energy-intensive production are being considered. Economy Minister Bruno Le Maire called on the European Commission to act as a united economic front.

🇯🇵 Japan: Tokyo is concerned about the politicization of trade. Prime Minister Kishida reaffirmed Japan’s commitment to fair and open commerce. Major companies like Toyota and Panasonic are reassessing risks and accelerating plans to relocate production to Vietnam and Mexico.

🇨🇳 China: China retaliated by raising tariffs on U.S. goods to 125% and tightening rules for American companies. Chinese media launched a “Buy Local” campaign. Beijing is also considering banning rare earth exports to the U.S. — a critical resource for high-tech industries.

🇺🇸 United States: Wall Street saw a dip followed by partial recovery. Nasdaq fell 4.3% during the day but regained half of the loss after news of the “pause” for allies. The White House stated that “further measures will be flexible,” while the Treasury issued a memo on possible tax relief. Agricultural groups are demanding compensation for potential export losses.

📉 What’s Next? The Fallout

• According to the WTO, U.S.-China trade may drop by up to 80%, severely affecting the global economy.
• Global GDP could shrink by 7% if trade blocs remain divided — equal to over $6 trillion in losses.
• Asia is losing competitiveness due to double tax and logistics shocks. ASEAN countries are already reporting a 12% drop in electronics and textile orders.
• In the U.S., debates are intensifying around economic nationalism and the government’s role in global trade. Conservatives support Trump’s approach, while business groups are calling for immediate dialogue with China.

Trump’s trade policy is not just a return to protectionism — it’s an attempt to reshape global rules.

But the strategic uncertainty it creates is already shaking trust in the U.S., even among its closest allies. The economy is reacting nervously. Asia and Europe are restructuring supply chains, while Washington walks a tightrope between election populism and global responsibility.

The big question: Can the system hold until November?