What Happened? |
China said on Friday it will impose a 34% reciprocal tariff measure on the U.S. in response to President Donald Trump's sweeping tariff plan. |
The announcement comes just days after President Trump unveiled a baseline tariff of 10% on all goods coming into the U.S. |
China as a result could reach tariffs as high as 54%. |
'This practice of the US is not in line with international trade rules, seriously undermines China's legitimate rights and interests, and is a typical unilateral bullying practice,' China's State Council Tariff Commission said in a statement. |
The new measures against the U.S. will reportedly go into effect on April 10. |
Trump took to Truth Social Friday to express remarks toward China and their decision to engage in a trade battle. |
'China played it wrong, they panicked — the one thing they cannot afford to do,' Trump said. |
He stated countries like Vietnam are engaging with his administration to potentially cut U.S. tariffs down to zero. |
But Chinese Foreign Ministry spokesperson Guo Jiakun told reporters Thursday that the U.S. tariff hikes on imports under the pretext of reciprocity 'gravely violates World Trade Organization rules.' |
The 34% tariffs announced against China are in addition to 20% tariffs already imposed to address the threat of synthetic opioids, including fentanyl, flowing into the U.S. |
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Why it Matters |
Trump's announcement aims to boost U.S. manufacturing but has triggered sharp drops in the market. |
The Dow Jones, S&P 500, and Nasdaq indexes have all dropped, experiencing some of their worst days reportedly in five years. |
Some have pointed to Trump's announcement as the biggest upheaval of global trade norms since World War II. |
As of Saturday, the 10% universal tariff went into effect, while the reciprocal measures for specific countries will begin on April 9. |
Trump has already imposed a 20% tariff on goods from the European Union as Mexico and Canada are still subject to 25% tariffs. |
Although economists warn the new taxes will result in higher prices and slower growth, the president believes that now 'would be a PERFECT time for Fed Chairman Jerome Powell to cut interest rates.' |
'Energy prices are down, interest rates are down, inflation is down, even eggs are down 69%, and Jobs are up, all within two months,' Trump said Friday. 'A BIG WIN for America.' |
He accuses Fed chairman Powell of 'playing politics.' |
However, experts still predict that other countries could likely be pushed into recession. |
Stellantis temporarily laid off 900 workers at five U.S. facilities, according to reports, as a result of import tariffs of 25% on cars and car parts. |
Some assembly plant production in Mexico and Canada was also temporarily paused. |
How it Affects You |
Trump states these levies aim to 'rectify trade practices that contribute to large and persistent annual United States goods trade deficits.' |
His administration supports that these tariff measures are the first steps to bringing more production and jobs to the U.S. |
The flashing-red warning sign from Wall Street has experts concerned about the impact tariffs will have on inflation and consumer costs down the line. |
That includes the possibility of the average American worker's spending power being impacted in pursuit of addressing trade imbalances. |
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Disclosures |
*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur. |
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period. |
*Please read the offering circular and related risks at invest.modemobile.com. |
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