Trump's 10% tariff takes effect; worst week for U.S. stocks, global markets in panic

U.S. President Donald Trump's 10% baseline tariff on imports from many countries took effect this afternoon, intensifying the ongoing trade war.

China has already retaliated with its own tariffs, sending global markets into turmoil.

Our Kim Jung-sil reports.

U.S. President Donald Trump's initial 10% "baseline" tariff on imports took effect at 12:01 AM Eastern Time on Saturday.

Only a few nations, including Canada and Mexico, are exempt.

The 10% baseline tariff can be seen as the 'first phase' of the tariffs President Trump announced on April 2nd, which he called 'Liberation Day' for America.

From April 9th, the second phase of tariffs will come into effect, targeting countries President Trump has labeled as 'the worst offenders,' including South Korea, which will face a 25% tariff.

For China, the tariff rate will rise to 54%.

In response, China announced on Friday that it would impose a reciprocal 34% tariff on all U.S. imports, set to take effect on April 10th.

The latest tariff announcements have shaken global markets.

In the U.S., all three major stock indexes plummeted, with the Dow Jones falling by 5.5% and the S&P 500 dropping nearly 6%, capping the worst week since 2020.

"It's an economic Armageddon that was unleashed by Trump. And the tariff war has begun, and we believe this could set tech stocks and the tech industry in the U.S. back potentially a decade."

Analysts warn that the economic consequences of the trade war could be severe, particularly for U.S. tech companies reliant on Asian supply chains.

Professor Yang Jun-sok, an economics expert at The Catholic University of Korea, says China is directly challenging President Trump, arguing that once tariffs exceed a certain level, China faces little risk, but this has rattled American investors.

"It'll be a big question whether the European Union and Canada will join China in retaliation. If they do, then President Trump may have no choice but to back down from his high tariff policy."

As stock markets continue to tumble, all eyes are on whether China's latest move will prompt President Trump to reconsider his aggressive tariff policies.

Kim Jung-sil, Arirang News.