Trump unleashes global economic chaos. New tariffs cause worldwide stock market drops and a strengthened dollar. What does this mean for the global economy? Watch our analysis. #TrumpTariffs #GlobalTradeWar #MarketChaos
00:00Trump's tariffs create global chaos. Markets on alert, August 1.
00:05The self-imposed deadline for President Donald Trump's new tariff plan has become a day of global financial chaos.
00:12The drastic new import duties, ranging from 10% to 41%, have shaken dozens of countries, causing dramatic market shifts and a climate of widespread uncertainty.
00:22In a seemingly contradictory move, the U.S. dollar has shown unexpected strength, hitting a two-month high.
00:30Analysts suggest that investors are betting that this tariff policy will be inflationary, which could make it difficult for the U.S. Federal Reserve to cut interest rates a factor that traditionally supports the dollar.
00:40However, the rest of the world has not shared this optimism.
00:44The Canadian dollar plummeted to a 10-week low after a new 35% tariff was imposed on its goods.
00:51The South African rand also hit a two-month low.
00:53The global stock markets have been affected with significant drops in Europe, including a fall of over 2% in Paris's CAC index.
01:01In Asia, the sharpest decline was in South Korea, where the Cosby index plunged 3.9%.
01:08Even futures for major U.S. indexes like the S&P 500 and the NASDAQ point to a negative opening, signaling a difficult day for Wall Street.
01:17Trump's tariffs were announced just hours before the deadline.
01:21A universal 10% tariff will apply to countries with a trade surplus with the U.S., while countries with a deficit will face tariffs of at least 15%.
01:30Among the hardest-hit countries are Switzerland, with a 39% tariff, and Canada, with a 35% tariff, justified by Trump for alleged failures in controlling fentanyl smuggling.
01:42India also faces a 25% tariff, and the European Union, a baseline of 15% on most of its goods.
01:50Despite the turmoil, U.S. Trade Representative Jameson Greer insists that the measures are not about punishment but about protecting American interests.
01:58However, the uncertainty is already affecting the economy.
02:03Companies have put hiring on hold, contributing to a slowdown in the U.S. labor market.
02:08Employers added only 73,000 new jobs in July, well below expectations.
02:13Amid this backdrop, the Federal Reserve, led by Jerome Powell, remains firm.
02:19Despite continuous attacks from President Trump, who called him a stubborn moron,
02:23Powell has made it clear that he will not cut interest rates until he fully assesses the impact of these tariffs on inflation and the job market.
02:31The unemployment rate, which rose to 4.2% in July, will be a key number for the central bank to watch.
02:38The implementation of these tariffs marks a significant escalation in Trump's trade policies,
02:43creating a situation of global chaos that nations and markets alike will have to contend with in the coming months.
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