President Trump’s sweeping tariff regime officially kicked in at 12:01 AM ET on Saturday, marking what trade lawyer Kelly Ann Shaw called “the single biggest trade action of our lifetime.” With U.S. Customs now collecting a baseline 10% levy on all imports from dozens of nations, the administration has thrown a grenade into the foundations of the post-WWII global trade order—and markets are still tumbling from the blast.
Markets in Meltdown
The fallout was immediate: The S&P 500 lost over $5 trillion in market capitalization across two trading days, a crash not seen since the early days of the pandemic. The index is now down 17% from its February highs. Nasdaq plunged nearly 6%, oil prices sank, and investors poured into Treasurys, dragging 10-year yields to 4%. The economic panic underscored the reality that Trump’s tariffs were not just talk—they’re a new world order.
Tariffs Begin, With More to Come
The initial 10% tariffs are now being collected at all U.S. ports of entry. A 51-day grace period allows already-shipped goods to avoid the tax if they arrive before May 27. But this is just the beginning. On April 9, the second wave hit:
‣ 🇨🇳 China: 34% tariff → Total tariff now 54%
‣ 🇪🇺 EU: 20%
‣ 🇯🇵 Japan: 24%
‣ 🇻🇳 Vietnam: 46%
‣ 🇮🇱 Israel: 17%
‣ 🇹🇼 Taiwan: 32%
‣ 🇬🇧 UK: 10%
‣ 🇦🇺 Australia: 10%
‣ 🇸🇦 Saudi Arabia: 10%
‣ Total: 57 countries face enhanced tariffs
Some industries, including semiconductors, pharmaceuticals, uranium, and crude oil, are temporarily exempt—but the administration is reportedly considering extending the tariffs to these sectors in the coming months.
Global Backlash
The geopolitical response has been swift and severe.
‣ China retaliated with a 34% blanket tariff on U.S. goods and restricted rare earth exports. In Beijing’s words, “The market has spoken.”
‣ France’s Macron posted on X: “A trade war is in no one’s interest. We must stand united.”
‣ UK’s Keir Starmer pledged to protect British industries, but left “nothing off the table” as talks with the U.S. continue.
‣ Israel’s Netanyahu is flying to Washington to discuss the impact of the 17% tariff on Israeli exports.
‣ Vietnam opened negotiations with the White House following Trump’s 46% tariff.
‣ Japan’s PM Ishiba is urgently seeking a call with Trump over the 24% hit.
‣ Italy’s Finance Minister warned against retaliation, fearing even deeper economic pain.
Trade Disruption in Motion
Jaguar Land Rover halted all shipments to the U.S., citing the need to “evaluate new trading terms.” Taiwan’s President Lai met with chip execs on Saturday to assess the blow from a 32% tariff on its tech exports. Elon Musk, appearing via video in Italy, called for “a zero tariff situation between the U.S. and Europe,” a rare public break from Trump’s hardline stance. (Jaguar Land Rover to pause US shipments over tariffs)
Structural Realignment Begins
Trump remains defiant, claiming the tariffs are part of an “economic revolution” that will bring factories back and punish nations exploiting America’s open market. On social media, he warned: “HANG TOUGH. It won’t be easy, but the end result will be historic.”
But the scale of disruption is hard to overstate. $5 trillion lost. Supply chains snapped. Political alliances strained. Global trade flows rerouted. And we’re only on day two.
Trump’s trade doctrine is no longer a campaign slogan—it’s real, and it’s here. With reciprocal tariffs, escalating global retaliation, and the S&P enduring its worst shock in years, the world economy may have just crossed into a new era. Whether that ends in renewed American strength—or deeper global fragmentation—remains to be seen.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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