The planetary tariff war has begun: Trump strikes, the World reacts

The Global Tariff War Has Begun: Trump declared it. China, the EU, and other U.S. trading partners are gearing up to respond “tit for tat” but without shutting the door to negotiation. Trump’s tariffs announcement is the lead story in major global media outlets this morning.

The announcement was made with great emphasis in the White House Rose Garden, as global stock markets closed for the day. Reactions came according to time zones: first from China and Japan, then from Europe. All responses were critical, aggressive, however non-ultimatum.

But there’s another headline shaking Washington: a Politico scoop suggesting Elon Musk may be about to leave the Doge, the Department for Public Administration Efficiency. There are both denials and confirmations, with reports suggesting it could happen in a matter of days.

Trump 2: Trump’s Tariffs Decisions and Statements

The Wall Street Journal reports, “Stocks fall after Trump announces tariffs on all imports”. Immediately after the decision, the S&P 500 dropped 1.9% in futures markets, the Nasdaq 2.7%, gold hit record highs, the dollar weakened, and U.S. Treasury yields rose.

Trump declared a national emergency over trade, aiming to reduce the enormous U.S. trade deficit. Stefano Feltri argues that Trump “doesn’t understand how international trade works and risks pushing America into recession” even though “he’s not alone in wanting more protectionism”.

Trump targets all imports with a 10% flat tariff, adjusting tariffs on countries considered “bad actors” based on their trade deficits with the U.S. The average tariff for China will be 54%, while for Europe, it will be 20%. Among the least affected countries, the UK will face a 10% tariff, while Switzerland, Japan, South Korea, India, Indonesia, and many Southeast Asian nations will be “punished”. The measures are expected to take effect immediately, with some exceptions.

The Washington Post describes this as a “sharp escalation of the trade war” and notes an unprecedented use of tariffs not seen in decades since the post-war era. For the paper, “Trump’s tariffs could be a heavy blow for Europe and a gift to China”. The New York Times observes that the measures are more drastic than experts predicted, stating “the president expects tariffs to translate into jobs in the U.S… But in the auto sector, each car produced will cost thousands more”.

The Associated Press highlights Trump’s aggressive rhetoric in announcing the tariffs: “For decades, our country has been devastated, plundered, raped, and exploited by other countries”. This “aggressive rhetoric” stems from his desire to dismantle the global economic and trade system the U.S. helped create after World War II.

For Trump, the tariffs will usher in a “golden age”, revitalizing the “American Dream” and generating “billions of dollars” to reduce taxes and debt. The Rose Garden was adorned with American flags, and the President’s family, most of the government, and workers from the auto and steel industries were brought in to cheer him on.

The triumphant tycoon announced the economic pivot to “put America First and make America rich again”, calling it “the day of liberation” and “the day we reclaim our future”. He continued: “We’ll make others pay the tariffs they impose on us. Reciprocity means doing to others what they do to us, it’s very simple”, but clarified that tariffs won’t be exactly reciprocal “we’ll tax them half of what they tax us”, citing the EU, which imposes a 39% tariff, while the U.S. will impose a 20% tariff”.

Trump declared that the world has “robbed us for 50 years, but it won’t happen anymore. This will be America’s golden age.” He added, “If you want zero tariffs, come and produce in America” repeating a mantra he’s embraced since shortly after his inauguration, especially at the Davos Forum.

The executive order signed by the President contains a clause allowing him to respond to any retaliation. “And he will” his aides assure. The White House is confident that the announcement of these measures will calm the nerves of investors, who have been on edge due to uncertainty.

Politico reveals a behind-the-scenes story: the European Union, feeling “betrayed by its oldest ally”, had hoped to defuse Trump’s tariffs by offering to buy more gas from the U.S. But this European offer reportedly “hit a wall of U.S. bureaucracy and indifference”. European Commission President Ursula von der Leyen called the tariffs “illegal” but there’s little hope for the World Trade Organization, which Trump has stripped of power. Von der Leyen now hopes for “a united response” and warns, “the EU is ready to retaliate”.

The Wall Street Journal reports that some Republican senators disagree with Trump, especially on measures against Canada. But it remains to be seen whether and how this dissent will manifest.

Trump 2: The tycoon and the richest man in the World towards separation

Before Trump’s tariff announcement, a bombshell from Politico rocked U.S. political circles: the President reportedly told his inner circle that his “right-hand man” Elon Musk, is about to leave, “possibly in the next few weeks”. While Trump is reportedly satisfied with Musk’s performance, the tech mogul is now seen as a political risk.

Politico reports: “Musk is heading for a quick exit from Washington, after a turbulent season leading Trump’s Department for Public Administration Efficiency (Doge)”. Sources say the Doge was never meant to be a permanent structure and could be winding down earlier than expected, especially as Musk is losing substantial money there.

There are denials, but it’s a fact that Musk’s involvement in Washington is harming both his finances and Trump’s political popularity. Tesla sales in Q1 2025 dropped by 13%, reflecting industrial and commercial factors like rising costs and aging models, but also the anti-Musk campaign shared by many consumers in the U.S. and worldwide.

The New York Times notes, “Musk’s involvement in far-right politics has contributed to a drop in sales and a collapse in countries like Norway, which are inclined toward electric vehicles but also value democracy and solidarity”.

The Washington Post adds: “The Musk experiment appears to be a political failure”. Many media outlets wonder if Musk’s decision to leave has anything to do with the electoral defeat suffered Tuesday in Wisconsin, where a conservative candidate for the state’s Supreme Court, backed by Musk, was beaten by a progressive judge supported, among others, by Musk’s rival billionaire George Soros. However, despite the “lesson learned” Musk seems determined to “remain involved in politics”.

Trump 2: Corruption charges against the mayor of New York dropped

In another development in U.S. political-legal news, federal prosecutors yesterday dropped corruption charges against New York Mayor Eric Adams, though they criticized the reasoning used by the Justice Department to request dismissal: that Adams was willing to cooperate with the federal administration on combating illegal immigration in New York City.

This agreement between Trump and the Democratic mayor was made even before Trump’s presidential inauguration.

The withdrawal of charges is unrelated to the merits of the case: pressures from the Justice Department led to the resignation of officials and prosecutors who refused to comply with the department’s directives. The New York Times writes: “This decision closes the first criminal case against a sitting New York mayor in modern history and shows how the judicial system is being used by the Trump 2 administration to advance the president’s agenda”.