President Trump just posted on his social media platform, declaring today as "Liberation Day" in the U.S.—the day he will announce the imposition of heavy tariffs against the rest of the world. According to Trump, these tariffs will make the U.S. richer and more powerful. However, economists and industry leaders warn that these measures could lead to higher consumer prices, increased inflation, and potentially trigger a recession in the U.S.
Additionally, some of the affected countries are organizing into "mini trade blocs," resulting in unexpected partnerships that would have been unthinkable just a few years ago. Notably, Japan, China, and South Korea are planning a joint response to Trump’s tariffs.
The European Union, the world's second-largest economy and a major U.S. trade partner, has also announced that it will retaliate against the American tariffs. Canada and Mexico, the U.S.’s two largest trading partners, have coordinated a joint response as well, both strengthening ties with China as an alternative trade partner.
Brazil is also expected to be significantly impacted by these new tariffs, but it remains to be seen how the Lula administration will respond.
Today is set to be an intense day, with all eyes on the Oval Office and Trump’s words.
You might also like...
