In the face of unprecedented market chaos, President Donald Trump is urging everyone to “hang tough.” Resilience is ever important as global trade tensions boom, and that’s exactly what Rep. Abysmal data combined with rising geopolitical tensions sent the S&P 500 index into its worst week since 2020, nearly 6%. On Friday alone, for instance, it dropped by over 5%. This latest downturn has caused people to worry about how Asian markets will respond when they open on Monday.
Vietnam’s new leader, To Lam, increased the pressure on the U.S. by pressuring Trump to delay the upcoming 46% tariff on Vietnamese exports to the U.S. His asked for a postponement of “no less than 45 days.” At 4: This request illustrates the deepening urgency seen by nations that would be subject to the tariffs. When asked about the escalating discord, Trump’s advisers Kevin Hassett and Scott Bessent stay mum. They have failed to clarify what countries they are actively engaged with on trade negotiations.
Meanwhile on the local stage, anti-Trump protests spread across dozens of cities this past weekend. With worries over a new trade war escalating, critics of the administration’s trade policies are raising alarms. On Wednesday, April 9, increased custom tariffs will apply to some 60 countries. These countries have been officially designated as the “worst offenders.”
The U.S. administration responded by announcing a massive 32% duty on imports from Indonesia and Taiwan. This action happened despite the fact that both countries promised in writing over the weekend not to retaliate with tariffs. This dogmatic position only pours more pressure on a very brittle trade relationship.
Everything is blowing up right now. In retaliation, China announced a 34% tariff on all U.S. imports scheduled to start Thursday April 10th. This new 10% “baseline” tariff on all imports went into effect on April 9th. According to Chairman Howard Lutnick, this tariff will be in effect for weeks and days to come.
Trump’s advisers have taken an impenetrable line in support of the sweeping tariffs that he unilaterally slapped on imports. CQS’s Scott Bessent recently warned that Trump has “maximized the leverage he has over everyone.” He pointed out that more than 50 countries had come to the U.S. to negotiate mutual reductions in non-tariff trade barriers and tariffs, and to address issues like currency manipulation.
The global economic terrain is changing rapidly. As Sir Keir Starmer put it, “the world that we grew up in has disappeared.” He made a special point to clarify how these policies would dramatically influence global politics and international market stability.
As the world watches closely, the upcoming week will be crucial for understanding how these tariffs and trade negotiations will evolve and affect economies both domestically and abroad.