Latest Cover Story | The U.S. Declares War on Global Trade (AI Translation)

最新封面报道｜美国对全球贸易宣战

[para. 1] On April 2nd, U.S. President Donald Trump announced new "reciprocal tariffs" targeting all trading partners, marking a significant shift in global trade relations. These tariffs, introduced during a press conference at the White House, aim to impose varying rates in response to perceived unfair practices by other nations. Trump highlighted this move as stepping away from the era of global free trade, symbolically dismantling the established systems that have thrived for decades.

[para. 2] The tariffs include a 34% rate on China and a range between 20% to 49% on other partners such as the EU, Japan, and India. A baseline 10% tariff would apply to all trading nations. This aggressive tariff policy could lead to increased inflation and economic slowdown, stoking investor concerns and market instability globally. The policy formulation involved a simplistic calculation based on U.S. trade deficits with respective countries, resulting in significant backlash and criticism.

[para. 3] The U.S. government defended the move, claiming disparities in tariff levels. Tariffs imposed were reportedly aligned with perceived tariff rates other countries charge the U.S., supported by a formula that includes trade volumes and elasticity estimates. Despite the government's defense, concerns about escalating trade wars and economic downturns have been prevalent.

[para. 4] Major trading nations like the European Union and individual countries such as Australia have expressed disappointment and threatened potential retaliation. Allies like Canada and Mexico have been exempted from these broad tariffs under the terms of existing trade agreements like the USMCA, though they face specific sectoral tariffs.

[para. 5] The tariffs have severe implications for global markets. Following the announcement, major U.S. stock indices saw significant fluctuations, reflecting investor concern. Economists predict that this policy turn could result in a weakening U.S. economy, raising recession risks and impacting long-term growth projections.

[para. 6] The policy is widely seen as a turning point, interrupting the global trade system's evolution towards liberalization. Experts argue this not only affects economic parameters but also pulses global political relationships, challenging the balance between multilateral trade ties and nationalistic policies.

[para. 7] As the U.S. embarks on this path, other nations are scrutinizing their strategies. The EU, for instance, is geared up for its response mechanism to counteract U.S. tariffs while urging dialogue to prevent escalation.

[para. 8] Analysts caution that such unilateral moves deepen hostilities and could undermine years of cooperative trade endeavors, weakening global supply chains and exacerbating inflationary pressures. They advocate for negotiations as a remedy to rescue the strained ties among the world's leading economies.

[para. 9] Amidst these abrupt changes, some nations might reconsider their trade strategies, possibly leaning towards regional alliances and cross-regional trade negotiations, further challenging U.S. hegemony in global economics.

[para. 10] U.S. domestic impacts aren't negligible, with anticipated increases in consumer prices and uncertainty regarding the nation's manufacturing sector. While the tariffs might aim to protect U.S. interests, the broader economic repercussions question their efficacy in achieving the long-term goals of economic growth and stability.

[para. 11] Comprehensive analyses suggest that while some countries may make concessions, broader intergovernmental alignment or retaliatory practices might arise as nations seek to protect their interests against the backdrop of U.S. protectionism.

[para. 12] Ultimately, economic experts stress the importance of adaptability and caution for both domestic and international stakeholders, advising immediate diplomatic efforts to mitigate potential adverse impacts from this sweeping tariff policy.