Talking tariffs - as of the 8th of April...

Right then - the following post was written for You Pol on the 8th of April. All tariffs have now been lowered to 10%, other than the tariffs on China, which have been raised to 125%. A new update will be published at… some point, when this author has had some sleep. 

It’s almost been a week since Donald Trump announced his Liberation Day tariffs, and we haven’t seen a moment’s peace since. From chaotic market movement, to warring politicians, here’s a lowdown of some of the chaos.

Tariff troubles

Last Wednesday, Trump announced his full plans to tariff the nations on his worst offenders list. Some countries, like the UK, received a 10% tariff, a figure quickly established as the baseline tariff, others, such as China and Sri Lanka received more aggressive tariffs of over 30%. It’s fair to say that the implementation of these tariffs sent the markets into a tailspin, with the FTSE and the Dow suffering major drops in the immediate wake of the policy. Stocks continued to drop until the evening of the 7th, with a significant percentage of Wall Street contending with ‘bear market’ territory. 

Some economists have also been pretty damning about the equation used to calculate the tariff percentages, with the figures coming under fire. The idea that the policy can be labelled and marketed as ‘reciprocal’ was debunked with speed, as the rate was calculated with the goal of removing the trade deficit, rather than directly matching the existing tariff imposed on them. 

Different countries are responding in different ways. Some, such as Canada, have chosen to hit back quick. Others are biding their time, waiting out the initial storm before responding with their own policies. Others still are choosing to attempt to negotiate with Trump, asking, begging, imploring him to cut tariffs on their products. To put it shortly - there isn't a global agreement on how to handle this, it’s sort of each-to-their-own. 

But dare I say that that’s the boring bit. The numbers, percentages and stocks are only part of the bigger picture. What we really should be asking is what is the wider impact of these tariffs?

How do they make us feel?

Scared, if the markets are anything to go by. For the last few days, they’ve been in a constant state of flux. Yesterday, at rumours that the tariffs could be suspended, they shot up, only to sink lower after the White House decried these rumours as ‘fake news’. As agreements are formed, confidence in the markets is looking to increase, but investors are flighty - any quick shocks and falls look to be imminent. 

Rumours of infighting are starting to emerge from the corners of the White House, as key figures and famous faces trade blows over how to handle the policy. Musk, who’s been firmly in the Trump camp, is seemingly becoming increasingly ostracised from other loyalists as cracks in the tariff brigade begin to show. 

And then there’s anger. A lot of it. And a whole heap of it is emanating from China, who have placed their own tariffs on the US following Trump’s 34%. Not to be outdone, Trump then declared that he was wiling to threaten a 50% tariff on China if they didn’t keel. In a move that shocked no-one, China hasn’t budged from their position, continuing to hold firm (as I write this - politics moves faster than my WPM score sometimes!). This locks two of the major global players in a trade war, potentially rewriting global alliances and trading blocs. Whatever these nations do, the ripples will reach all of us. 

And then there’s the consumer, stuck in the middle of a trade dispute that they can do very little about, watching as their leaders contend with a situation that's almost impossible to ‘win’. As economists forecast price rises, stagnation, and possible recession, we sit there watching and waiting for the punchline to hit with bated breath (it never comes). We are simply the collateral, caught in a spider’s web of stocks, shares, exports and figures which change so fast that they’re almost dizzying.

It’s safe to say that if you’re working in any sector affected by the tariffs, it might’ve been a sleepless week.