Trump Is Trying To Reshape The Global Economy. It Seems In Open Rebellion Against His Tariffs
The global economy appeared to be in open rebellion against President Donald Trump's tariffs as they took effect Wednesday.
Business executives are warning of a potential recession caused by his policies, some of the top U.S. trading partners are retaliating with their own import taxes and the stock market is quivering after days of decline.
Trump's tariffs kicked in shortly after midnight, including 104 on products from China, 20 on the European Union, 24 on Japan and 25 on South Korea. Administration officials have tried to reassure voters, Republican lawmakers and CEOs that the rates are negotiable, but by their own admission that process could take months.
When a downturn appears on the horizon, investors typically crowd into U.S. Treasury notes as a safe haven, viewing the federal government as a source of stability. Not this time. Government bond prices are down, pushing up the interest rate on the 10-year U.S. Treasury note to 4.39 in a sign that the world is increasingly leery of Trump's moves.
The Republican president was publicly defiant as the stock market recovered slightly and then sold off in morning trading.