After US President Donald Trump announced major increases in customs duties on goods imported from around the world on Thursday, it became a matter of curiosity which countries would be affected and how these changes would be reflected in the daily lives of consumers. US President Donald Trump announced new tax tariffs for countries at a meeting held at the White House. Stating that they will tear down trade walls that harm them, Trump said, "The golden age of the USA is coming back. Today, we will declare our economic independence."
Many major US trading partners will be hit hard by Trump’s so-called reciprocal tariffs. China is levied with a 34% rate, which is additional to the existing 20% duties on all Chinese imports to the United States, while the European Union gets 20%. Trump said the reciprocal tariffs would bring "stronger competition and lower prices for consumers" in the U.S. He also reminded that they would impose a 25 percent tariff on imported cars.
Reflection of Reciprocal Tariffs
The business world continues to raise its voice against US President Donald Trump. JPMorgan CEO Jamie Dimon said the tariff issue should be resolved as soon as possible, warning that tariffs could also raise prices. Dimon called for a swift resolution of uncertainties caused by US President Donald Trump's tariffs and warned against a "catastrophic" disintegration of long-standing US economic alliances.
China stated that they will respond to the new tariffs made by the US with 34% customs duties. In response, US President Trump made a new move and announced that they will apply an additional 50% tax. Trump stated that if any country increases taxes in response, they will be subject to additional customs duties. The Chinese Ministry of Commerce said in a statement that China opposes the US tariff increases and will resist any steps aimed at raising tariffs further. The statement noted that the US insisted on its mistake with the tariff threat and once again revealed its coercive nature, and added, "If the US continues on this path, China will respond with resolute countermeasures until the end."
Markets After Reciprocal Tariffs
As the S&P 500 moved away from the bear market threshold, its return from intraday low to intraday high was the biggest turnaround since 2020, when Covid disrupted global trade. The index fell 4.71 percent, was up 3.40 percent at one point, and ended the day down 0.23 percent. The Nasdaq 100 was up 0.19 percent at the close. JPMorgan Chase (NYSE:JPM)'s Dubravko Lakos-Bujas lowered his year-end forecast for the S&P 500 from 6,500 to 5,200.
The Nikkei 225 index rose more than 5%, while stocks in Hong Kong and China rose on state-linked funds’ purchases and central bank pledges to provide loans to help stabilize the market. Oil rose, while gold rose for the first time in four days. The US dollar fell against a basket of G-10 currencies.
Elon Musk's wealth fell below $300 billion for the first time since November amid the widespread economic fallout from President Donald Trump's tariffs. Musk lost $4.4 billion as Tesla (NASDAQ:TSLA) shares continued to slide, taking his total wealth to $297.8 billion. That comes after a combined $31 billion loss after the tariffs. Musk's losses since the beginning of 2025 total $134.7 billion.
Brent rebounded after three days of declines as a calmer tone returned to global markets as investors weighed U.S. President Donald Trump’s latest tariff moves and possible retaliatory measures. Brent prices fell 2% to near a four-year low on fears that the U.S. President Donald Trump’s latest round of trade tariffs could push global economies into recession and slash energy demand. But markets are seeing a potential cap on the downside.
Technical Analysis
US Dollar, Weekly
After the reciprocal tariff announcements, the dollar index lost 0.30%. In the chart where the bull trend is still continuing, the price is testing the level that has been a strong support level for a long time. US President Trump argues that the new taxes imposed will be positive for the country's economy in the long term. As a result of the price not being able to break the support level and starting to rise, 110 levels can be determined as the new target. The Stochastic oscillator is giving signals that the price may rise.
S&P 500, Weekly
In the weekly time frames, the price started to rise again after testing the support level. Like the US50 and US100 indexes, the US500 index also reacted negatively to fundamental news. After the price fails to break the 200MA and support level, the rises may gain momentum. In line with the ongoing competition with China, strong declines will be a matter of time. If the price continues to rise, the previous record level of 6080 will be the new target.
Hang Seng Index, Daily
After the reciprocal tariffs, both the US and Asian stock markets continue to experience strong declines. Mutual responses to the taxes imposed by China and the US continue. The confrontation between the world's two largest economies directly affects other economies. In the daily time frames on Hang Seng Index, it is seen that the price continues to move in an upward trend. There is a high probability that the price will try to close the opened GAP. The RSI continues to move in the oversold period.
XBR/USD, Weekly
Brent rebounded after three days of declines as a calmer tone returned to global markets as investors weighed U.S. President Donald Trump’s latest tariff moves and possible retaliatory measures. Brent prices fell 2% to near a four-year low on fears that the U.S. President Donald Trump’s latest round of trade tariffs could push global economies into recession and slash energy demand. But markets are seeing a potential cap on the downside. In the weekly time frames, the price is testing the 61.8% Fibonacci level. If this level is broken, the trend may change direction. The RSI is giving bearish signals within the price corridor.
What Impact Will Tariffs Have on American Consumers?
Some of the additional costs resulting from tariffs are usually passed on to the end consumer. For this reason, there is concern that tariffs will further increase the cost of living in the US. It is estimated that the tariffs will cause inflation to increase and could cost an average of $3,800 per household in the US.
The Anderson Economic Group's analysis examines the impact of Trump's 25 percent tariff on automobile imports. Accordingly, the tariffs are expected to add an additional $2,500 to $5,000 to the lowest-cost American cars, and up to $20,000 to some imported models. It is estimated that the impact of the automobile tariffs on American consumers could cost $30 billion in the first full year. Annual inflation in the US is currently above the Fed's long-term target of 2 percent. Inflation in the country was last recorded as 0.2 percent monthly and 2.8 percent annually in February
Conclusion
President Trump's aggressive new tariffs — especially the reciprocal duties targeting China (34%) and the EU (20%) — have triggered immediate global and domestic market reactions.
U.S. indexes like the S&P 500 and Nasdaq 100 saw volatile swings, while Asian markets rallied thanks to state support. Oil and gold prices rebounded, and the dollar weakened. Tariffs are expected to raise consumer costs, with estimates of $3,800 per U.S. household, and $2,500–$20,000 extra on car prices. Overall, the tariffs are likely to increase inflation, strain U.S. households, and heighten market volatility, as global players brace for prolonged economic friction.