Over 50 countries seek deals as markets fall and recession fears grow.
The global trade war has entered a new phase. As of Saturday, the United States began enforcing a 10% base tariff on all imports, with additional increases reaching up to 34% for Chinese products and significant hikes for goods from the EU, India, Japan, and several Latin American countries. President Donald Trump’s decision has triggered a wave of diplomatic reactions, with over 50 countries reaching out to negotiate exemptions. Meanwhile, financial markets have reacted sharply, and warnings of a global recession are growing louder.
Global trade war: what the U.S. did and why
On April 2, Trump announced a sweeping tariff regime, describing it as an “economic revolution” aimed at protecting American jobs and industries. “The U.S. has been the world’s punching bag for too long,” he wrote on Truth Social. «Now we’re fighting back».
Treasury Secretary Scott Bessent framed the decision as a matter of national security, citing vulnerabilities exposed by the COVID-19 pandemic, particularly in pharmaceuticals, semiconductors, and supply chains.
Immediate impact of the global trade war on markets
The response from global markets was swift. Major indexes in Asia, Europe, and the U.S. plunged, with Wall Street suffering its worst week since the COVID-19 crash. U.S. stocks dropped nearly 10% in two days, a move analysts directly attribute to Trump’s aggressive new tariff plan.
Despite this, top Trump advisers insist that a recession is not imminent. Economic advisor Kevin Hassett confirmed that over 50 nations have contacted the White House to open bilateral negotiations. Still, officials have stressed that “there will be no quick concessions”, suggesting a long, drawn-out dispute.
How the global trade war could affect Latin America
In Latin America, the consequences could be severe. In Chile, economists warn that growth projections for 2025 could be at risk. The country needs to reach 2.1% growth to avoid being labeled as the worst-performing administration since the return of democracy. A weakening Chinese economy —Chile’s top trading partner— could reduce copper demand and exports.
China’s embassy in Santiago described the U.S. actions as “economic coercion and hegemonism,” while reaffirming its commitment to investing in Chilean industries such as lithium, renewable energy, and technology.
Chile’s private sector, meanwhile, has urged diplomatic restraint. The president of the Confederation of Production and Commerce (CPC) criticized President Boric’s public remarks about Trump and called for a pragmatic, long-term trade policy focused on maintaining strong relations with both China and the U.S..
