At 12:01 a.m. on Wednesday, President Donald Trump’s new round of tariffs took effect, slapping imports from China with a 104% tax and escalating what is shaping up to be a global trade war with no clear off-ramp. China did not back down, instead retaliating by more than doubling its tariffs on U.S. goods from 34% to 84%.
The ripple effects were immediate: Wall Street tumbled and global markets lost trillions of dollars. JPMorgan Chase CEO Jamie Dimon is already bracing for a recession, warning that a downturn is now the likely outcome of this economic brinkmanship. The Dow Jones industrial average fell more than 2,000 points, and Treasury yields rose sharply — classic signs of investor panic.
And the tariffs are not limited to China. Trump’s so-called “Liberation Day” tariff plan now affects more than 60 countries with new import duties. He has also hinted that pharmaceuticals may be next in line for tariffs.
