Trade war: Reciprocal tariffs shake markets and divide US political class

A week after the reciprocal tariffs imposed by the Trump administration came into force, the markets continue to rock.  Wall Street experienced its fourth consecutive session of decline, proof of investors’ growing concern.

The tension is not confined to the trading floor. Several leading figures in the Republican Party are speaking out against the measures. Mike Pence, Donald Trump’s former vice-president, denounced “the largest peacetime tax increase in U.S. history”. Texas senator Ted Cruz fears heavy political consequences for Republicans in the 2026 mid-term elections. Even Rand Paul, a libertarian who is close to Trump on a number of issues, has recognized that tariffs are taxes in disguise, which Americans will end up paying.

The backdrop is the trade escalation between the USA, China and Europe, which is fuelling nervousness in world markets. How far will Donald Trump go in this trade war? And above all, how long will economies – and voters – put up with this pressure?

source: Le Temps