US Imposes Tariffs on China and EU at 34% and 20%, Impacting Global Economy

Published on 4.4.25

  The imposition of tariffs on China and the European Union, with rates of 34% and 20%, respectively, is part of a long-standing complaint that US workers and companies are hurt by global trade. The move has sparked uncertainty in financial markets, with benchmark 10-year Treasury yields falling to a five-month low of 4.04%. Economists warn that the tariffs could slow the global economy and increase living costs for US families by thousands of dollars. China has vowed to take "countermeasures" against the US, while Germany's automotive industry association warned that the tariffs would harm its interests. The move increases duties on aluminium, steel and autos, as well as all goods from China. The US administration claims that the tariffs will restore manufacturing capabilities, but this move has been met with skepticism by external economists. The escalation of a trade war is likely to have far-reaching consequences for international relations and global economic stability. The euro rose 0.63% to $1.091625 in response to the announcement, while Asian currencies like China's yuan slid against the dollar due to the tariffs.

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