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Donald Trump dismissed concerns over his administration’s tariff policies, urging critics to “don’t be stupid” amidst accusations that he was “shooting himself in the foot” as the trade conflict sparked a significant downturn in global stock markets.
As Trump’s administration faced mounting criticism, economic instability became evident, affecting the American economy and beyond due to the imposition of new US import tariffs.
Comparisons were drawn between Trump and former UK Prime Minister Liz Truss, whose brief tenure was marred by a controversial economic strategy that led to swift political consequences.
London’s financial market saw a sharp decline with the FTSE 100 index hitting a year-low, although it did manage to recover partially after the initial sell-off.
The FTSE 100, which represents the largest companies in the UK, saw an early trading dip of approximately 5% before a minor recovery.
In the United States, major indices reflected similar turmoil, with the S&P 500 dropping 3.4%, the Dow Jones decreasing by 3.1%, and the Nasdaq falling by 4.1%. However, there were temporary rebounds later in the day as markets fluctuated sharply.
European and Asian markets also experienced declines, with Germany’s Dax index nearly plummeting by ten percent before staging a recovery.
In a bold assertion, Trump took to Truth Social, claiming, “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
Despite Trump’s defiance, political leaders and financial experts around the globe voiced concerns regarding the tariff impositions, which many believe could escalate into a full-scale trade war, particularly following China’s announcement of retaliatory tariffs that mirror those from the US.
In the UK, Trump’s tariffs included a blanket 10% on various imports and a 25% levy on automotive vehicles. The British government opted not to retaliate, focusing instead on negotiations for a trade deal aimed at mitigating the impact of these tariffs.
Former Chancellor Lord Lamont, who was in office during the 1992 exchange rate crisis, commented, “What the Government has done so far is right. If President Trump chooses to shoot himself in the foot, it’s not a reason for us to shoot ourselves in our feet.”
JPMorgan Chase CEO Jamie Dimon cautioned that the tariffs could lead to prolonged negative effects on the economy, and billionaire investor Bill Ackman, initially a Trump supporter, warned that these actions might trigger an “economic nuclear winter.”
Following the administration’s announcement of extensive tariff measures, JPMorgan’s economists increased the likelihood of a recession both in the US and globally to 60%, highlighting the potential for significant economic downturns in the coming months.
The British government is currently working to support the beleaguered automotive sector impacted by these tariffs, with Transport Secretary Heidi Alexander noting the tariffs could adversely affect consumer demand and pricing.
Critics such as Liberal Democrat leader Sir Ed Davey described Trump’s tariff strategy as a destructive approach that raises questions about his economic judgment, likening it to an absurdity given its potential fallout.
Source
www.yahoo.com