Trump’s 104% Tariffs Rattle Global Markets, Spark Fears of Recession

WASHINGTON/SINGAPORE – U.S. President Donald Trump’s sweeping reciprocal tariffs officially took effect Wednesday, slapping a massive 104% duty on Chinese imports and extending tariffs to dozens of nations—including traditional allies. The move has deepened global economic fears and triggered a market downturn.

The new tariff wave, part of Trump’s strategy to “rebalance” U.S. trade relationships, has thrown global financial markets into disarray. The S&P 500 is nearing bear market territory, and government bonds, usually considered safe investments, have also been hit by a wave of panic selling.

Despite global backlash, Trump stood by the tariffs, calling them a tool to pressure countries into trade negotiations. “A lot of countries want to make deals,” he said, even as he called the measures “permanent.”

China, hit hardest by the move, vowed to fight back. Beijing officials described the move as economic bullying and announced plans to protect China’s interests and stabilize its markets.

Countries like South Korea and Vietnam, also facing steep tariffs, are scrambling to respond with stimulus packages, subsidies, and diplomatic talks. Meanwhile, central banks in India and New Zealand have cut interest rates to cushion the economic blow.

U.S. consumers may soon feel the impact firsthand, as prices for everyday goods—from sneakers to electronics—are expected to rise. A Reuters/Ipsos poll revealed that nearly 75% of Americans expect inflation in the next six months.

Trump’s latest tariffs affect even close U.S. allies like the European Union, which now faces a 20% levy, prompting the bloc to consider retaliatory measures. Trump has also hinted at further tariffs—this time targeting pharmaceutical imports.

While some countries are seeking talks with the U.S., others are preparing for a drawn-out trade battle. The global economic outlook remains uncertain, with JPMorgan warning of a 60% chance of a global recession before the end of 2025.