STOCK markets in Europe fell in early trading yesterday morning, following on from an overnight collapse in Asian markets just ahead of the Trump tariffs which come into effect this week, and are expected to trigger the biggest ever financial crisis.
Yesterday, Japan’s Nikkei index closed down more than 4%, while in London the FTSE 100 lost around 1% in early trading.
The fall comes after Trump suggested that the new tariffs will hit and level all countries, not just those that have the biggest trade imbalances with the US, making for what Trump called ‘America’s Liberation Day’.
The US president made the comments as he prepared to unveil a massive slate of import taxes tomorrow so that America’s ‘Liberation Day’ leads to bankruptcies worldwide.
The measures will come on top of tariffs already imposed by Washington on aluminium, steel and vehicles, along with increased levies on all goods from China.
The UK ruling class is on its knees before Trump and is involved in a special pleading with him to grant the UK a tax exemption – a special pleading that he will ignore – or ask the UK government to grant him Canada as a reward.
With just days to go before the tariffs come into force, the UK is still locked in talks with the US, pleading for UK exemptions.
On Sunday, Downing Street stated that Labour Prime Minister Sir Keir Starmer had already had ‘productive negotiations’ with Trump by phone call, adding that the ‘special pleading’ talks would ‘continue at pace’. The UK ruling class is on its knees to Trump!
British negotiators are trying to win a last-minute exemption ahead of Trump’s 25% levy on car imports, which is expected to come in tomorrow.
Labour’s grovelling PM Starmer has previously said he does not want to jump into a trade war with the US – he is in favour of the earliest possible capitulation.
The UK government is arguing that the UK is a ‘special case’ and has a relatively equal trading relationship with the US, even a special relationship compared to its other ‘partners’.
US President Donald Trump is however engaged in a tariff war that will bankrupt his one-time close friends in the UK and the EU ruling classes as well!
Stock markets are having a rude awakening in the week ahead of Trump’s ‘Liberation Day’ tariffs announcement and proclaiming the right to rule of the US ruling class.
The tariffs announced so far target products including cars, aluminium and steel, and commodities from Canada, Mexico and China.
Trump is in fact declaring war on the rest of the world. His new comments that he could broaden tariffs this week have rattled global stock markets today.
He has suggested that new tariffs set to be announced this week will hit all countries, not just those that have the biggest trade imbalances with America.
Trump’s draconian measures will come on top of tariffs already imposed by Washington on aluminium, steel and vehicles, along with increased levies on all goods from China.
Before taking office in January, Trump suggested tariff is ‘the most beautiful word in the dictionary’. Now he plans to use them to the full!
Last week, the US president announced new import taxes of 25% on cars and car parts coming into America.
This is set to come into effect tomorrow, 2nd April, joining an array of other taxes already announced by the Trump presidency.
A 20% tax on all imports from China is already in place alongside a 25% tariffs on imports from Mexico and Canada that Trump enacted earlier this month. A 25% tariff on all steel and aluminium imports into the US has been active since earlier this month.
Stock markets are now falling in Asia and Europe after Trump said this week’s new tariffs will hit all countries, not just those that have the biggest trade imbalances with the US.
Tomorrow has been dubbed by Trump as ‘America’s Liberation Day’.
Workers have no alternative but to respond by building sections of the International Committee of the Fourth International worldwide to lead the working class to take revolutionary actions to smash capitalism and replace it with socialist economies based on satisfying people’s need.
Forward to the victory of the world socialist revolution!
