Small Factories in China Struggle Under Tariffs

 Small factories in China, around Guangzhou, are struggling as U.S. tariffs under President Trump goes to 125%. These small export-driven factories have been key to China's economic rise but now face canceled orders and shrinking profits. Many garment factories are shutting down temporarily to try to find new markets.  They also are focusing on China’s already saturated and discount-heavy domestic market. Some machinery producers like Elon Li are faring better due to lack of global competition and China's low production costs. Despite these challenges, factory managers still express confidence in China's long-term strength.

https://www.nytimes.com/2025/04/09/business/economy/guangzhou-china-exports-tariffs.html  

The oil-rich Gulf states are better-positioned to weather the tariff storm — but crashing crude prices could spell trouble

 The CNBC article discusses the complex impact of recent U.S. tariffs on oil-rich Gulf states. While these tariffs have introduced economic challenges, such as declines in stock markets and oil prices, they also present opportunities for these nations to reassess and strengthen their economic strategies. For instance, Saudi Arabia is leveraging the situation to enforce discipline within OPEC+ and bolster its market position. However, the broader economic strain from the tariffs and fluctuating oil prices underscores the need for Gulf states to diversify their economies and reduce reliance on oil revenues.

https://www.cnbc.com/2025/04/09/oil-rich-gulf-states-face-both-advantages-and-trouble-as-tariffs-hit.html

Tariffs Shake Up Markets

The U.S. stock market has been very volatile over the past week, largely driven by uncertainty surrounding Trump’s tariff policies. The markets have swung wildly, with sharp losses followed by dramatic rallies. This has reflected investors’ struggle to interpret the administration’s changing stance on trade. Earlier in the week, the S&P 500 dropped into bear market territory, falling over 10% in two days. The was its steepest decline since the pandemic in 2020. The Dow Jones Industrial Average shed more than 4,000 points since last Wednesday, while the Nasdaq and S&P 500 each fell over 11% during the same period.

On Monday, speculation about a potential delay in tariffs lifted markets temporarily, but gains were erased when the White House dismissed these rumors as “fake news.” Investors were further rattled by Trump’s suggestion of an additional 50% tariff on China, leading to same day swings of over 6%, a level of volatility rarely seen outside major crises like the 2008 financial meltdown.

Relief came on Wednesday April 9th when Trump announced a 90-day pause on tariffs for most countries, excluding China. This triggered a historic rally, the Dow surged over 2,300 points (7%), marking its biggest single-day gain in five years. The S&P 500 and Nasdaq also rebounded sharply by more than 7% and 8%, respectively. However, even with these gains, major indices remain significantly below their recent highs. The S&P 500 is still down 12% from February, while the Nasdaq is 18% below its December peak.

This week’s turbulence shows how sensitive U.S. markets are to trade policy shifts. Investors have been hit with conflicting signals. Initial fears of broad tariffs caused panic selling and then hopes of negotiation or delays fueled temporary recoveries. Analysts warn that continued volatility could undermine economic growth as inflation fears and recession risks grow. Despite Wednesday’s rally, uncertainty persists due to escalating tariffs on Chinese imports and unresolved trade tensions.

Read the article here: https://www.nytimes.com/2025/04/08/business/trump-tariffs-stock-markets.html

Trump Announces 90-Day Tariff "Pause" and Harder Hit to China

    Midday Wednesday, President Trump announced that a 90-day tariff "pause" will occur due to the fact that according to the president over 75 countries have already reached out in terms of negotiation regarding the tariffs. This pause means that during the next 90 days a universal rate will be set for all countries that have tariffs set on them, except for China. The universal rate will be 10%, the White House announced. Commerce Secretary, Howard Lutnick, took to X to say "the world is ready to work with President Trump to fix global trade". 

    On the complete opposite side of this, President Trump announced at the same time that the United States once again will increase their tariff rates on China. The newly announced number appears to be a 125% tariff rate. This is likely due to the fact that overnight China raised their tariff rate on the U.S. to 84%. It certainly looks as if we have a trade war on our hands, it will be very interesting to see how far this will go and what the result will be. 

    After the tariff draw back was announced almost all major stock indexes appear to have shot up from where they have been since the tariffs actually went into place. The Dow has surged 2,600 points, making that the largest rally in 5 years. Treasury Secretary Scott Bessent claimed that this move by President Trump "was his strategy all along". At this point I do not think that many people at all know what is going on or what direction we are heading. All that we know for sure is that trade relations between the U.S. and China are not improving with the two world-powers butting heads more and more.

Article: https://www.cnbc.com/2025/04/09/trump-announces-90-day-tariff-pause-for-at-least-some-countries.html 

U.S. - China Trade War: New Developments

China has made a bold move by raising tariffs on U.S. goods from 34% to a staggering 84%, effective April 10th. This action is in response to the Trump administration's latest increase on Chinese imports, which soared above 100% overnight. The ongoing standoff between the world's two largest economies has already rattled global markets, with the S&P 500 dropping nearly 20% from its recent peak. Even countries such as Japan which have suggested a willingness to negotiate are keeping a close eye on the escalating trade tensions. U.S. Treasury Secretary Scott Bessent maintains that these measures will ultimately backfire on Beijing, calling the tariff war "a loser" for China. Undoubtedly, the stakes have never been higher for both the U.S. and China.

Tariffs are meant to protect domestic industries, but in a globalized world, they often bring about ripple effects that can hurt both businesses and consumers in unpredictable ways. Prices can rise, manufacturing supply chains can get disrupted, and economic uncertainty can send investors into a panic. It is clear that both the U.S. and China want to come out on top, yet neither side seems eager to compromise or yield first. Cooperation and diplomacy could do more to stabilize the situation. In the weeks ahead, the real question is whether economic necessity will force a compromise before more damage is done. 

Link: https://www.cnbc.com/2025/04/09/china-slaps-retaliatory-tariffs-of-84percent-on-us-goods-in-response-to-trump.html

China Imposes Retaliatory Tariff on United States

On Friday, China’s Finance Ministry announced a 34% tariff on all goods imported from the United States beginning on April 10th. China is yearning President Trump to extinguish the announced tariff on China, and to resolve all trade differences in a mutually beneficial manner. China also believes that the tariffs are endangering global economic development and the stability of supply chains. Beijing has filed a complaint against the United States regarding the tariffs, claiming that it seriously violates world trade organization rules. Of course, President Trump has responded with a post on X, stating that China has got it all wrong, that they panicked, and that it is something they cannot afford to do. 

I find this move extremely ironic from China. We have heard for months the effects that tariffs will have on U.S imports, but never considered the potential retaliation that could be imposed. The United States relies heavily on a country like China, but how will the tariffs from both sides impact trade relationships and most importantly the supply of consumer goods from China?  I feel as if it will be extremely interesting to see how this affects China relations within the next coming months. Maybe this will incentivize Trump to extinguish all tariffs, but most likely not. 

Link : https://www.cnbc.com/2025/04/04/china-to-impose-34percent-retaliatory-tariff-on-all-goods-imported-from-the-us.html 

Would Banning TikTok Hurt the U.S. Economy?

 As the U.S. government revisits the idea of banning TikTok over national security concerns, it’s important to consider the broader economic consequences. While the debate has largely focused on data privacy and Chinese ownership, the platform also plays a significant role in the American digital economy.

According to Forbes, small businesses and creators in the U.S. generate an estimated $1.3 billion every month through TikTok, using it to promote products, attract customers, and earn income through partnerships and monetized content. For many entrepreneurs, especially those without large marketing budgets, TikTok provides a unique opportunity to reach wide audiences organically.

A ban could disproportionately hurt these smaller players, forcing them to rely on more expensive and less effective advertising platforms. It could also weaken the creator economy, a fast-growing sector where influencers, educators, and artists turn digital engagement into real income.

Beyond direct revenue loss, there’s a larger concern: the message a ban sends to foreign businesses. If a platform with over 150 million U.S. users can be removed by a political decision, it may deter future investment in American tech markets. That could stifle innovation and reduce competitive pressure on domestic platforms.

Of course, national security must be taken seriously. However, the economic impact of removing such a deeply integrated platform from the digital ecosystem shouldn’t be underestimated. The question is whether the security risks justify the economic fallout.

Should we protect personal data by banning TikTok or regulate it more transparently while preserving its economic value? The decision will shape the future of digital commerce and international tech policy.

https://www.forbes.com/sites/shirajjeczmien/2025/01/13/tiktok-on-the-brink-the-economic-and-cultural-cost-of-a-us-ban/

 

Global Economy Faces Uncertainty Amid New Tariffs

The global economy is going through tough times because of new tariffs announced by the United States. On April 5, 2025, President Donald Trump introduced a tariff on all products imported from the UK. This new tariff is on top of existing tariffs on steel, aluminum, cars, and car parts.

These new tariffs have caused a big reaction in the global stock markets. Investors are worried about how these changes will affect businesses and the economy. Countries like Japan, China, and Taiwan have seen their stock markets drop sharply because of these concerns.

Financial experts are warning that these tariffs could increase prices for consumers and harm economic growth. The new tariffs are also making it more expensive for companies to produce goods, which could lead to reduced production and even job cuts. 

Overall, the global economy is facing a lot of uncertainty because of these new tariffs. The effects could be widespread, impacting trade, economic growth, and jobs in many countries.

Source: https://www.theguardian.com/business/blog/live/2025/apr/07/global-stock-markets-brace-donald-trump-us-tariffs-business-live-updates-news?utm_source=chatgpt.com