Washington: US President Donald Trump’s big raise in tariffs has triggered an escalating trade war and sent global markets plummeting.
The S&P 500 fell 6 per cent Friday, the Dow Jones Industrial Average plunged 5.5 per cent and the Nasdaq composite dropped 5.8 per cent.
China announced Friday that it will impose a 34 per cent tax on all US imports next week, part of a flurry of retaliatory measures to Trump’s new tariffs.
Trump has doubled down on his commitment to tariffs, maintaining that his new levies will bring trillions of dollars of investment to the US while also criticizing other countries’ retaliatory measures.
Here’s the latest:
Italian Economy Minister Giancarlo Giorgetti warned that imposing retaliatory tariffs on the United States would be damaging for both Italy and Europe.
Speaking at a business forum in Cernobbio, near Milan, Giorgetti said Saturday that Italy is working for a “de-escalation” with the US following Trump’s announcement of a general tariff of 20 per cent on European Union countries.
“We should avoid launching a policy of counter-tariffs that could be damaging for everyone and especially for us,” Giorgetti said. “Our message is that we need to avoid pushing the panic button. … We are following a pragmatic and rational approach.”
Giorgetti proposed the EU allow member states to raise spending by relaxing the bloc’s fiscal rules.
Italy has a very limited budget leeway, as the government forecast its giant debt rising through 2026 to almost 138 per cent of GDP.
“The Italian public debt means reduced budget room for our country, a constraint that must be taken into account in any decisions we make,” Giorgetti said, also referring to EU plans to increase defence spending.
Taiwan’s says it will provide a USD 2.65 billion fund to aid industries most affected by US tariffs.
Taiwan has a trade surplus with the US, but much of it comes from Taiwanese industries trying to fulfil the US demand for Taiwan’s information technology products. Officials say Taiwan plans to negotiate with the US on how the new tariff rate of 32 per cent was determined and try to get a better deal.
Premier Cho Jung-tai has been charged with working closely with industries that are impacted and to communicate the public about their plans to stabilise the economy. Cho said Friday that electronics and information technology, steel and metal, machinery, auto parts, construction materials and home appliances will feel “significant impacts.”
In the agricultural field, moth orchids, edamame and such fish as tilapia, common dolphinfish and bass will be hit the hardest, he said.
