Nintendo Dilemma: US Tariffs Chase Switch 2 Console Where Ever It Goes; China Then, Vietnam Now

Nintendo has postponed U.S. pre-orders for its long-awaited Switch 2 console, originally scheduled for April 9, as it evaluates the potential impact of the latest round of U.S. tariffs especially on Vietnam, where it shifted its base five years ago from China.

“Pre-orders for Nintendo Switch 2 in the U.S. will not start April 9, 2025, in order to assess the potential impact of tariffs and evolving market conditions,” the company said in a statement. The official launch date of June 5 remains unchanged.

The delay follows sweeping tariffs introduced this week by the Trump administration, which target a wide range of foreign goods — particularly from Asia, where Nintendo’s supply chain is heavily concentrated. The tariffs come amid a renewed focus on protecting U.S. manufacturing and tech production, though consumer electronics makers warn of higher prices and possible product delays.

The Switch 2 is Nintendo’s most significant hardware release in nearly a decade, building on the blockbuster success of the original Nintendo Switch. First launched in March 2017, the hybrid handheld-console went on to sell over 150 million units worldwide, surpassing the Game Boy and trailing only the PlayStation 2 and Nintendo DS in lifetime sales. The Switch helped revitalize Nintendo’s fortunes after the commercial struggles of the Wii U, which sold just 13.6 million units globally.

The original Switch maintained strong momentum with hit franchises like Zelda: Breath of the Wild, Animal Crossing: New Horizons, and Super Smash Bros. Ultimate. Its lifespan was extended with iterations like the Switch Lite and OLED model. The new Switch 2, revealed just days before the tariffs were announced, is priced at $449.99 with day-one titles like Mario Kart World expected to cost $80.

Last time in 2019, Nintendo faced trade-related challenges and shifted part of its Switch production out of China to Vietnam amid earlier U.S.-China trade tensions. Now, as tariffs threaten a new wave of costs, industry analysts say gaming hardware may become collateral damage in the ongoing trade war.

In 2024, video game hardware sales reached $17.9 billion in the U.S., according to NPD Group, with Nintendo accounting for a significant share. Any disruption to its launch cycle could reverberate across retail and digital ecosystems ahead of the critical summer and holiday sales windows.

Nintendo has not said when pre-orders will resume, only that it is monitoring the situation and will provide updates “at a later date.”

After China, EU Gears Up With $28 Billion Retaliatory Tariff Hit on US Goods

The European Union is poised to slap retaliatory tariffs on up to $28 billion (€25 billion) worth of U.S. imports within days, escalating trade tensions with Washington following sweeping new duties from President Donald Trump. Reuters reports the bloc will target a wide range of American products — including meat, cereals, wine, wood, clothing, chewing gum, dental floss, vacuum cleaners, and even toilet paper.

The move in response to Trump’s 25% tariffs on EU steel, aluminium, and vehicles, as well as 20% reciprocal tariffs taking effect Wednesday on nearly all other goods has made the long-time ally furious and frustrated.

The European Commission, which oversees the bloc’s trade policy, will unveil its proposed countermeasures to EU member states late Monday. The move comes as European Commission President Ursula von der Leyen blasted the U.S. levies as a “major blow to the world economy” but signaled openness to negotiations, saying the EU remains “always ready” to talk.

Trump’s latest tariff package hits approximately 70% of EU exports to the U.S., worth €532 billion ($585 billion) last year. Additional duties on copper, pharmaceuticals, semiconductors, and timber are reportedly still in the pipeline.

The EU response shows a vivid revival of hostilities that first erupted during Trump’s first term, when the U.S. imposed similar tariffs citing national security concerns under Section 232. At that time, the EU responded with duties on $3.4 billion in American exports, targeting iconic products like Harley-Davidson motorcycles, bourbon, and Levi’s jeans. That standoff was largely diffused under the Biden administration, with a temporary suspension of the tariffs in 2021, but the new wave under Trump’s second term is re-igniting economic tensions.

President Ursula von der Leyen also condemned the fresh duties as a “major blow to the world economy,” though the Commission has yet to formally announce its full response. “We are always ready to talk,” she added, hinting at a potential diplomatic track, even as the EU moves to finalize its hit list.

In 2024, EU exports to the United States totaled €532 billion ($585 billion), with top sectors including industrial machinery, pharmaceuticals, vehicles, and agricultural products. Roughly 70% of those exports now face some form of U.S. tariff under the new measures, with further duties on semiconductors, timber, and copper reportedly under consideration.

The 27-member EU trade ministers will meet Monday in Luxembourg for the first bloc-wide political discussion since Trump’s announcement to assess the damage and chart a coordinated response.

Avocados to Alcohol, Beer to Coffee, Beef to Cheese, Basmati Rice to Olive Oil — All Prices To Go Up Now

Enter any Supermarket, you will find all food prices shooting up. Food industry analyst Phil Lempert estimates that about 40,000 items — nearly half of all supermarket products — may be impacted by new tariffs, either directly or through ingredients.

The tariffs, part of President Trump’s push for reciprocal trade, aim to counteract what he called decades of unfair treatment by other nations. The plan includes higher duties on goods from the so-called “Dirty 15,” nations with high trade surpluses and barriers to U.S. exports. Here is an estimate of what goes up as there is no price going down:

Fruit Prices Mixed; Avocados Likely Safe


Imported fruits from Guatemala, Costa Rica, and Peru — all subject to new 10% tariffs — may rise in price, with Lempert warning of potential supply issues due to perishability. However, avocados, 87.6% of which are sourced from Mexico, will remain tariff-free as Mexico avoided inclusion on the White House’s list of affected countries.

Vegetables from Key Partners May Be Spared
Vegetables are largely imported from Mexico (69%) and Canada (20%), both of which escaped the latest tariffs. However, produce from other listed nations — like Guatemala, Peru, and China — could see cost increases. The USDA notes that fresh vegetable imports grew 200% between 1998 and 2020, indicating growing reliance on international supply chains.

Seafood Prices Set to Jump
Up to 85% of seafood consumed in the U.S. is imported. Countries like Vietnam (46% tariff), India (26%), Indonesia (32%), and Chile (10%) are key suppliers and were all hit by tariffs. “The U.S. seafood industry can’t cover that shortfall,” said Andy Harig from the Food Industry Association, warning of price hikes in seafood aisles.

Coffee Imports Face 10% Tariffs


The U.S., the world’s largest coffee importer, gets over 60% of its roasted coffee from Brazil and Colombia, both hit with 10% tariffs. Prices could rise, especially for Latin American beans which dominate the market.

Alcohol, Especially Wine and Beer, to Take a Hit


Imported alcohol is expected to be “clobbered,” Lempert told NPR. The EU faces 20% tariffs, affecting wine from France, Spain, and Italy. Beer imports from the Netherlands and Ireland were also targeted. Aluminum tariffs may further inflate canned beer prices, even for Mexican brands like Modelo and Corona, which otherwise escaped tariffs.

Skyrocketing Olive Oil and Cheese Costs


Spain, Italy, and Greece — the top sources for olive oil — face 20% tariffs, driving up already high prices. Lempert warned prices will go “even higher.” Cheeses like brie, Gouda, and Parmigiano-Reggiano from the EU could also become pricier due to similar duties.

Barring U.S. beef, which is domestically sourced, historic high prices and reduced cattle herds may cause slight increases. Rice is also mostly homegrown, though jasmine and basmati varieties from Thailand and India — both facing tariffs — could see modest price bumps.

Brazil Braces For Boost in Exports As China’s Retaliatory Tariffs Hit US Soybeans

China’s latest retaliatory move in the deepening trade conflict with the United States has dealt a major blow to American farmers, with soybean exports at the epicenter. The new tariffs, unveiled Friday, include sweeping 34% duties on all U.S. imports, effectively pricing out a large swath of American agricultural products from the Chinese market.

Brazil, already the largest exporter of soybeans to China, is emerging as the biggest beneficiary. A strong harvest and competitive pricing have positioned Brazilian producers to take advantage of the void left by U.S. exporters.

Soybeans bore the brunt of the initial market reaction. Futures on the Chicago Board of Trade fell over 3% to $9.77 per bushel — the lowest level recorded this year. A Singapore-based grain trader said the scale of the new duties effectively blocks most U.S. agricultural exports to China. “At 34%, nothing is viable,” the trader said.

European traders echoed the concerns, with expectations that the European Union may also impose restrictions on U.S. soybean imports in retaliation for the broad tariffs Washington announced earlier in the week.

The developments come just weeks after earlier Chinese tariffs targeted $21 billion worth of U.S. farm products. Friday’s response adds further pressure on an already strained trade relationship, with analysts warning of long-term shifts in global supply chains.

“This is going to hurt U.S. exporters badly,” said Jack Scoville, vice president at Price Futures Group in Chicago. “We’ve antagonized nearly every major trading partner. Where do we expect our goods to go now?”

“Brazil is set to see record shipments in Q2,” said Carlos Mera, head of agricultural research at Rabobank. “They’re not the only ones — Argentina, Paraguay, and even Australia stand to benefit depending on the crop.”

Local soybean prices in Brazil and surrounding countries have already begun climbing. On Thursday, a day after U.S. tariff hikes were announced, Brazilian port premiums surged to over $1 per bushel above the Chicago benchmark.

“Despite strong harvests, we expect regional prices to stay elevated,” said Sol Arcidiacono, head of Latin American grain sales at HedgePoint Global Markets. “This trade war will likely push more South American farmers to increase production, especially in Brazil, where growth had started to plateau.”

China, long the top destination for American agricultural exports, has been scaling back purchases. U.S. farm exports to China fell to $29.25 billion in 2024, down from $42.8 billion in 2022 — a trend that analysts say could accelerate further under the current tariff regime.

In a further blow to U.S. agribusiness, Chinese authorities also cancelled documentation for certain imports from American suppliers on Friday, including sorghum from C&D (USA) Inc. and poultry products from Mountaire Farms and other U.S.-based firms, citing food safety issues.

US Tariffs Fallout: Signals of Retaliation, Recession, Rebuke, Restive Recourse Emerge

Global equities extended their sharp decline on Friday after China unveiled a new wave of retaliatory tariffs against the United States, deepening concerns over a full-blown trade war and its economic repercussions.

Beijing announced a 34% tariff on a wide range of American goods, prompting another market selloff that capped one of the worst weeks for financial markets since the pandemic. Major indexes confirmed milestone losses, with the tech-heavy Nasdaq Composite entering a bear market, and the Dow Jones Industrial Average sliding into correction territory.

Adding to the market turbulence, China introduced export controls on key rare earth materials and expanded its so-called “unreliable entities” list to include several U.S. firms, some of which are involved in arms sales to Taiwan — a move seen as a pointed political signal amid heightened geopolitical tensions.

President Donald Trump, for his part, stood firm on trade policy, signaling no intention of reversing course. The White House downplayed the financial fallout, while Trump himself remained largely out of public view, issuing defiant messages from his Florida estate, calling this “a great time to invest” and reiterating his belief that the U.S. will “win” the trade confrontation.

For the week, U.S. equity benchmarks suffered substantial losses: the S&P 500 dropped more than 9%, the Nasdaq declined over 10%, and the Dow Jones slid nearly 8%. The Russell 2000 index of smaller companies fell nearly 10%, underscoring the breadth of investor concern.

In response to the deepening standoff, economists at J.P. Morgan raised the probability of a global recession to 60%, citing elevated uncertainty, weakened business sentiment, and the prospect of slowing trade.

“This kind of back-and-forth trade policy leads to a risk-off environment,” said Stephane Ekolo, a market strategist in London. “Investors are bracing for the possibility of sustained economic disruption.”

Notably, dissent over the tariffs emerged within Republican ranks. Senator Ted Cruz warned the measures could inflict significant economic damage and prove politically costly. While he expressed hope that tariffs might ultimately secure better trade terms, he cautioned against a prolonged standoff, calling it a “terrible outcome.”

Cruz, however, continued to back Trump legislatively, voting against a recent Senate measure that would have blocked tariffs on Canadian imports.

At the Federal Reserve, Chair Jerome Powell acknowledged the impact of the trade escalation during remarks to business journalists, saying the size of the new tariffs was “larger than expected” and could increase inflationary pressures while dampening growth. He emphasized the Fed would remain data-dependent but reaffirmed a focus on maintaining inflation expectations.

Meanwhile, markets in other regions also faltered. In Canada, employment data showed the first net job loss since 2022, with rising uncertainty causing companies to delay hiring decisions. In Japan, Prime Minister Shigeru Ishiba labeled the situation a “national crisis,” as financial stocks plunged, driving Tokyo’s market toward its worst performance in years.

European officials expressed frustration over the U.S. trade stance. EU Trade Commissioner Maros Sefcovic said he held an “honest” discussion with American officials, reiterating that the tariffs were harmful and unjustified. Internal divisions across the bloc, however, remain, with some nations urging caution while others push for immediate retaliatory action.

French President Emmanuel Macron urged businesses to halt new U.S. investments, while Finance Minister Eric Lombard warned against tit-for-tat tariffs, noting the risk of higher consumer costs in Europe.

As American tariffs take effect — with most imports facing a 10% surcharge starting Saturday — analysts say prices for everyday items could rise significantly. Some estimates suggest that luxury electronics like smartphones could surge to nearly $2,300 if companies pass on tariff-related costs to consumers.

Despite the sharp market drop, the U.S. labor market remained strong in March, with job growth exceeding expectations, according to government data released Friday. Still, some analysts warned that a sustained trade war could erode business confidence and eventually weigh on hiring.

While markets await further developments, the uncertainty shows little sign of abating.

Cboe Volatility Index or Market Anxiety Peaks 8-Month High As Trade Tensions Surge

Rising fears over an escalating trade conflict sent shockwaves through global financial markets this week, triggering sharp declines across equities, heightened volatility in currencies and bonds, and growing concern over economic stability.

On Wall Street, a key measure of market anxiety — the Cboe Volatility Index (VIX) — soared to its highest closing level in five years, reflecting deep investor unease. The Nasdaq Composite officially entered bear market territory after tumbling more than 10% in just two sessions. Broader indexes like the S&P 500 also suffered steep losses, bringing year-to-date declines close to 14%.

The financial fallout follows sweeping new U.S. tariffs, introduced by President Donald Trump, and swift retaliatory measures from China. The aggressive moves stoked concerns of a prolonged global trade war, pushing investors to seek safety and reassess risks.

“The uncertainty is rattling every corner of the market,” said a senior portfolio manager. “This is more than a typical selloff — this is fear of contagion.”

In the currency markets, the euro experienced its highest one-month implied volatility in two years, while the U.S. dollar swung sharply in reaction to trade headlines. Treasuries rallied as investors flocked to safe assets, pushing the 10-year yield to a six-month low of 3.86%.

Market strategists noted that economic indicators are beginning to reflect the strain. U.S. high-yield corporate bond spreads have widened to levels not seen since late 2023, and credit default swaps on U.S. government debt have surged — signaling rising concern about fiscal stability.

Federal Reserve Chair Jerome Powell acknowledged the potential impact of the tariffs, saying the measures were “larger than anticipated” and could weigh on growth while fueling inflation. Meanwhile, President Trump urged the central bank to cut interest rates, calling it an opportune moment for action.

In equity markets, both institutional and retail investors reacted dramatically. Hedge funds and leveraged ETFs shed over $40 billion in U.S. stocks, according to investment bank data. However, retail investors, hoping to capitalize on the dip, poured nearly $5 billion into equities — marking the highest single-day inflow in a decade.

Still, analysts caution that volatility is unlikely to fade soon. “Unless we see real movement toward negotiation or policy changes, market pressure is likely to persist,” said Kathy Jones, chief fixed income strategist at a major U.S. brokerage.

Indicators of stress are flashing across the board, from swap spreads to correlation indices. Yet for now, financial professionals say the situation remains tense but controlled — a market on edge, but not in full panic.

Tariffs Shake Up U.S. and Canadian Farm Equipment Industry

A recent farm show in Regina, Canada witnessed many farmers hesitant to buy new equipment like tractors and harvesters, leave alone new-tech machinery. Apparent are worries about tariffs making already expensive machines even more costly, following US-China retaliatory measures.

Some of these machines, like combines, cost more than $800,000. If tariffs suddenly raise prices, farmers say it could hurt their budgets badly, reports Reuters after interviewing several farmers [resent at the farm show. Although Canada avoided some broad U.S. tariffs, it still faces extra charges on things like steel, aluminum, and cars that don’t meet trade rules under the U.S.-Mexico-Canada Agreement. Farmers aren’t sure if the new tariffs apply to farm equipment, and sorting it all out could take weeks.

In the meantime, farmers are holding off on purchases. Some equipment companies, like Case IH, have already laid off workers in the U.S. due to falling demand. Canadian farmers and equipment sellers say the uncertainty is making it risky to buy or sell anything right now.

Bill Prybylski, who leads a Saskatchewan farmers’ group, said many farmers are nervous about spending, even as they admire new equipment at shows.

Derek Molnar from rockpicker-maker Degelman Industries said manufacturers don’t know how the tariffs will affect them either. Since machines are often ordered months in advance, unexpected tariffs could mean big losses.

Manitoba farmer Gunter Jochum said he’s waiting to buy new equipment. Like many farmers, he buys machines from various countries, including the U.S., Germany, and Canada.

Kip Eideberg from the Association of Equipment Manufacturers said about 30% of U.S. farm equipment is sold abroad, with Canada as the top buyer. He warned that tariffs could raise prices, hurt jobs, and mess up the supply chain.

In Saskatchewan, Honey Bee’s general manager Jamie Pegg said they may cut back on production to avoid having too much unsold equipment.

Nancy Malone, who works with Canadian machinery dealers, said the confusion is hurting business. She’s asking the Canadian government not to add more tariffs on U.S. farm machinery, hoping to protect local dealers and farmers.

‘Market Speaks’: China Blasts US Tariffs After Stocks Nosedive, Urges Dialogue

China issued a pointed response to sweeping new U.S. tariffs on Saturday, condemning the measures as economically reckless and politically damaging, while pointing to the global market selloff as proof of their destabilizing impact.

With stock markets around the world sliding sharply—Wall Street saw its worst week since the pandemic—Beijing warned Washington against using trade as a geopolitical weapon. The Chinese foreign ministry said the reaction from investors sent a clear message: “The market has spoken.”

Chinese Foreign Ministry spokesperson Guo Jiakun in a social media post accompanied by images of the week’s market rout, said:“Now is the time for the U.S. to stop making wrong choices.”

The escalating trade tensions stem from President Donald Trump’s latest round of 34% tariffs on Chinese imports, raising total duties on Chinese goods this year to 54%. The move also included shutting down a loophole that allowed small parcels from China to enter the U.S. untaxed.

Beijing Hits Back Hard

In retaliation, Beijing imposed mirror tariffs on U.S. exports and introduced restrictions on select rare earth materials, adding fuel to a trade conflict already straining the world’s two largest economies. These countermeasures triggered a steep global selloff, with the S&P 500 closing down 9% for the week.

In a statement carried by Xinhua, China’s state-run news agency, officials called the U.S. actions a threat to global economic stability and a violation of the principles underpinning international trade. “Tariffs should not be tools of suppression,” the statement read. “The United States must cease undermining China’s right to pursue legitimate development.”

China pledged to “take all necessary steps” to defend its sovereignty and development interests, adding that it would not hesitate to act again if provoked.

Hong Kong Stays Neutral

Chinese trade associations representing key sectors—including metals, electronics, textiles, and agriculture—issued coordinated statements denouncing the tariffs. Food industry leaders urged exporters to strengthen internal cooperation and pivot to new markets across Asia, Africa, and Latin America.

Meanwhile, Hong Kong’s Financial Secretary Paul Chan said the city would not impose any retaliatory measures of its own, stressing its position as a free port and open economy. “Maintaining the free flow of capital and goods is our core advantage,” Chan said in an interview with RTHK. “We remain committed to a rules-based global trade system.”

Otherwise, for now, the global response is clear: rising tariffs, deepening divides, and markets in freefall — with no resolution in sight.

French Cognac Producers Grapple with Crisis as US Tariffs And Global Slowdown Take Toll

Cognac producers in southwestern France are facing mounting economic pressure as a wave of new U.S. tariffs deepens the challenges already posed by declining global demand and earlier Chinese trade retaliation.

The latest blow came with U.S. President Donald Trump’s decision to impose a 20% tariff on all European goods, including French cognac, a move that threatens the backbone of France’s nearly $3 billion spirits export industry. The United States remains the largest market for cognac, accounting for roughly half of global sales.

Producers like Christophe Fillioux, whose family-owned estate has operated for five generations, are now making difficult decisions. He recently uprooted sections of his vineyard and plans to remove more next year as part of a broader industry-wide response aimed at adjusting to the downturn. “The future is very uncertain. It’s hard to plan anything right now,” said Fillioux, standing in a vineyard planted by his father in 1980.

This comes as the region’s growers were already reeling from Chinese tariffs imposed in retaliation for EU duties on electric vehicles. Shipments to China, the second-largest cognac market by volume, have dropped by over 50% since last October.

The situation may worsen: Trump has floated the possibility of further tariffs of up to 200% on European wine and spirits, escalating tensions amid the ongoing trade disputes.

Global Slump and Overcapacity

The current crisis is exacerbated by an earlier expansion in production during the post-pandemic boom, when global demand for luxury goods spiked. Many growers invested heavily, often through loans, to meet the anticipated surge. Today, many of those same producers are struggling under debt as sales decline.

Industry body BNIC (Bureau National Interprofessionnel du Cognac) has responded by cutting production limits for the third consecutive year — now just half of 2022 levels — citing a “dramatically weakened” global economic climate. “We’re doing our best to manage the fallout with banks and local governments,” said BNIC President Florent Morillon, acknowledging that external factors beyond the control of producers have triggered the crisis.

In the Cognac region, the industry — from vineyard workers to barrel-makers — supports around 70,000 jobs, many of which are now at risk. Layoffs have begun, and local leaders warn of rising unemployment.

Changing Tastes, Rising Costs

Even before the latest tariffs, cognac’s popularity in the U.S. was beginning to wane due to price hikes and changing consumer preferences. While the U.S. remains a key market, especially for mid-range bottles priced between $36–$60, analysts note that American drinkers are increasingly shifting toward alternatives like tequila and whiskey. “Cognac hasn’t expanded beyond niche demographics in the U.S.,” said Thomas Mesmin, a Paris-based luxury industry consultant. “The big brands still rely on a few core cities and loyal customer bases.”

Still, the cultural connection between cognac and the U.S. — particularly its historic popularity among Black American communities and high-profile partnerships in entertainment and sports — has helped maintain visibility in the market. But experts warn that brands may struggle to absorb the tariff cost without losing customers. “Even a $1 or $2 price increase could cause disruption in today’s environment,” Morillon said.

Fourth-generation grower Pascale Dupuy, 67, said he expects his income to fall by 40% this year after major buyers like Remy Martin slashed contracts. His daughter has shown little interest in continuing the family business, raising concerns about the long-term future of small, independent cognac estates. “It’s just one more problem in a growing list,” he said. “I don’t know if it’s worth continuing anymore.”

As producers explore new markets in Asia and Africa to offset losses, many remain uncertain about how long the downturn will last or whether the industry can recover from the combined shocks of tariffs, shifting demand, and overproduction.

Netanyahu Rushes to Meet Trump After 17% Tariffs Imposed on Israeli Goods

Israeli Prime Minister Benjamin Netanyahu is expected to meet U.S. President Donald Trump on Monday to discuss the recently announced tariffs. This impromptu visit, as reported by three Israeli officials and a White House official, could mark the first by a foreign leader to negotiate a deal to remove tariffs.

The surprise invitation by Trump came during a phone call on Thursday with Netanyahu, who is currently visiting Hungary. The Israeli leader raised the tariff issue during the call, prompting the U.S. President to extend an invitation for an in-person meeting.

However, Netanyahu’s office has yet to confirm the visit, which is also likely to include discussions on Iran and Israel’s ongoing conflict with the Palestinian militant group Hamas in Gaza. The new tariff policy announced by Trump imposes a 17% tariff on unspecified Israeli goods exports to the United States. This move could significantly impact Israel’s exports of machinery and medical equipment, according to an Israeli finance ministry official.

Global Trade Landscape Amid Tariff Tensions

The U.S. is Israel’s closest ally and largest single trading partner, and this new policy could strain the longstanding trade relationship between the two countries. In response to the U.S. tariff policy, Israel had already moved to cancel its remaining tariffs on U.S. imports on Tuesday. The two countries had signed a free trade agreement 40 years ago, and about 98% of goods from the U.S. are now tax-free in Israel.

The global trade landscape is also being reshaped by other countries’ reactions to Trump’s tariffs. For instance, Jaguar Land Rover has paused shipments to the U.S. as Trump’s tariffs come into force. Similarly, Nissan Motor is considering shifting some domestic production of U.S.-bound vehicles to the U.S. to mitigate the impact of Trump’s tariffs.

In Europe, Italy’s economy minister Giancarlo Giorgetti warned against the imposition of retaliatory tariffs on the United States in response to Trump’s tariff announcement. He called for a de-escalation with the U.S., highlighting the potential damage that a policy of counter-tariffs could cause.

The tariff announcement has sent shockwaves through global stock markets, wiping out $5tn in stock market value for S&P 500 companies by Friday’s close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds.

The current situation has increasingly been resonating the 1930s, when the U.S. imposed the Smoot-Hawley Tariff Act, which raised tariffs on over 20,000 imported goods. This move was met with retaliatory tariffs from other countries, leading to a significant reduction in global trade and contributing to the severity of the Great Depression.

However, Trump remains unrepentant, stating that his policies will never change. The 78-year-old Republican, who was spending a long weekend golfing at his course in Palm Beach, Florida, is banking on the theory that the might of the world’s biggest economy will force foreign companies to manufacture on U.S. soil, rather than continue to import goods.

Otherwise, the impromptu meeting between Netanyahu and Trump could have far-reaching implications for global trade. The outcome of their discussions could either escalate or de-escalate the current trade tensions, with potential impacts on economies worldwide.

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