The New York Center For Foreign Policy Affairs (NYCFPA) strongly condemned Donald Trump’s tariffs as creating immense difficulty for Europe and fundamentally wrong, while urging for last-ditch talks to prevent an all-out trade war.
A few days ago, Trump announced that he would set a 10% baseline tariff on all imports to the U.S. and more increased duties on dozens of other nations. Among U.S. allies, Japan hit with a 24% rate, Taiwan a 32% rate, South Korea a 25% rate and the European Union a 20% rate. Meanwhile, New Zealand, the UK, Australia, Saudi Arabia, and most of South America were given a minimum rate of 10%.
Trump declared that China would face a 34% tariff, in addition to the 20% tariff he imposed earlier this year. This raises the overall new levies to 54%, nearing the 60% rate he had threatened during his campaign.
The US stock market crashed following the Trump administration’s announcement of tariffs affecting nearly every country and territory globally.
The diverse S&P 500 index fell by 4.8%, while the Dow Jones dropped 4% — marking their largest declines since June 2020, when the COVID-19 pandemic caused a global economic downturn. The tech-focused Nasdaq experienced its worst trading day since March 2020, declining by 6%. The sole sector that avoided losses was consumer staples, which includes companies selling essential food items.
The consequences will be severe for millions globally. Trump’s choice to impose tariffs was harsh and unjustified, seemingly demanding a halt to French investment in the US until there’s clarity on the tariffs. Future investments, including those announced in recent weeks, ought to be suspended for a time for as long as the situation with the United States becomes clearer.
Donald Trump’s protectionist tariffs clash with the interests of millions in the US and Europe, who will unfortunately face adverse effects on their businesses and buying power as a result of these policies. The US administration fails to differentiate between allies and adversaries: it opposes all and sundry.
Trump’s decision was fundamentally misguided, constituting an assault on a trade system that has fostered global prosperity- an achievement of America itself. The tariffs posed significant challenges for Europe and are disastrous for both the United States and its citizens. Furthermore, these tariffs represent a substantial setback for the global economy, threatening dire consequences for millions.
The New York Center for Foreign Policy Affairs urges the United States to immediately withdraw its latest tariffs. The tariff threats to spiral the world’s largest economies deeper into a trade war that is likely to upend global supply chains. This action represents a historic tax increase that may bring the global order to its limits. It initiates a potentially difficult transition for numerous Americans, as necessary middle-class items like housing, vehicles, and clothing are anticipated to rise in price, while jeopardizing the alliances established to maintain peace and economic stability.
