讀後心得

After U.S. President Trump announced new tariffs, global stock markets plummeted, with the S&P 500 index dropping 4.8%, marking the worst performance since 2020. Major companies like Nike, Apple, and Dajit saw their stock prices fall more than 9%, raising concerns that the tariffs would trigger inflation and impact economic growth. Trading markets declined broadly from Asia to Europe, with the U.S. tariff policy causing unease in China and the European Union, both of which have indicated they will retaliate. Experts estimate that if tariffs continue to escalate, the U.S. will face the risk of economic recession, which could also affect global trade volumes.

On the day after U.S. President Trump announced a comprehensive imposition of new tariffs, global stock markets experienced a sharp decline, with expectations that the tariffs would lead to rising prices and impact economic growth both in the U.S. and abroad. The S&P 500 index, which tracks America's 500 largest companies, fell by 4.8%, marking the worst single-day performance since the economic shock from the COVID-19 pandemic in 2020. On that day, major financial markets declined across the board, from Asia to Europe. Shares of major consumer brands Nike, Apple, and Target all dropped by over 9%. Trump stated to reporters at the White House that the U.S. economy would "prosper," insisting on his decision to impose a tariff of at least 10% on imported goods, claiming it would increase federal revenue and encourage the return of American manufacturing.

This Republican president Trump imposed higher tariffs on products from dozens of countries, including trade partners like China and the European Union. The total tariffs faced by China and the EU could reach as high as 54% and 20%, respectively, both sides have indicated that retaliation will occur. The French president called on European companies to suspend their investment plans in the U.S. Tariffs are taxes levied on imported goods, and the plan announced by Trump on Wednesday raises these taxes to one of the highest levels in a century.

The World Trade Organization has expressed "deep concern" and predicts that trade volume may shrink by 1% this year as a result. Traders are worried that the tariffs could trigger inflation and hinder economic growth. On Friday morning, Japan's Nikkei 225 index fell by 2.7%, Australia's ASX200 index dropped by 1.6%, and South Korea's composite index remained flat or slightly down. During the Qingming Festival, the markets in China, Hong Kong, and Taiwan were closed. On Thursday, the S&P 500 index plummeted by 4.8%, erasing about $2 trillion, while the Dow Jones Industrial Average and Nasdaq indices fell by approximately 4% and 6%, respectively. U.S. stocks have been in a sell-off since mid-February, with ongoing concerns about the trade war intensifying.

On Thursday, Trump signed an executive order at the White House, emphasizing efforts to reverse the free trade order that the U.S. has dominated for decades. He stated, "I think progress is going very well; it's a big deal, like performing surgery on a patient." He also added, "The market will prosper, the stock market will prosper, and the country will prosper." The White House's account differs from Trump's rhetoric, as the former claims the new tariffs are not part of a negotiation strategy, while the latter hints that he might be willing to reach an agreement with trade partners.

The Prime Minister stated that Canada would impose a 25% retaliatory tariff on vehicles imported from the U.S. Trump had previously imposed a 25% tariff on Canada and Mexico. In the announcement, Trump did not take new measures against these two North American trading partners. Businesses now face the choice of either absorbing the tariff costs with their partners or passing the costs onto consumers, risking a decline in sales. According to some estimates, this move could significantly affect the economy, as U.S. consumer spending accounts for about 10% to 15% of the global economy.

Despite the significant drop in the stock market, gold, as a safe-haven asset, fell back after briefly reaching a historic high of $3,167.57 per ounce during the turmoil. The dollar weakened against several currencies. Analysts point out that these tariffs could cause European economic growth to decline by nearly one percentage point, and if the EU retaliates further, the impact could be even more pronounced. Experts warn that, if the U.S. does not take other measures, the economy could fall into recession, and Trump's goal of reviving manufacturing may take years to achieve, if it can be realized at all. Meanwhile, high import tariffs are unlikely to bring benefits in the short term but will immediately drag down the economy.

On Thursday, Stellantis, which produces Jeep, Fiat, and other brands, announced the temporary shutdown of its factories in Mexico and Canada in response to Trump's 25% tariff on imported cars, which will also lead to temporary layoffs of 900 workers at five U.S. plants that supply materials for these factories. As most sportswear is produced in Asia, Nike's stock price took the biggest hit in the S&P index, dropping 14%. Apple, which has a high dependence on its supply chain in China and Taiwan, saw its stock price fall by 9%. Other retailers also experienced declines, with Target down about 10%. Motorcycle manufacturer Harley-Davidson, affected by EU retaliatory tariffs during Trump's term, saw its stock price drop by 10%. In Europe, shares of the sportswear brand Adidas fell by more than 10%, while competitor Puma dropped by more than 9%. In the luxury goods sector, jewelry manufacturer Pandora's stock fell by over 10%, and the stock price of LVMH fell by more than 3% after tariffs were imposed on the EU and Switzerland.

Experts noted, "Retailers are now severely impacted because the tariffs are affecting countries we did not anticipate." More market volatility is expected in the future.