Trump's tariffs hit the world: markets are falling, businesses are panicking - Rezazade

The new round of the trade war announced by US President Donald Trump has already dealt a serious blow to the global economy. According to Ali Reza Rezazade, the first vice president of the Iranian opposition in Washington, the new import duties have become the largest US economic intervention in a decade, and the consequences could be long-lasting and devastating.

"We are seeing a domino effect. The blow has hit not only America's allies, but also Americans themselves - ordinary citizens, companies, investors," Rezazadeh stressed. According to him, the markets have already reacted with the sharpest drop since 2020: the Nasdaq index lost almost 6%, the S&P 500 fell by 4.8%, the Dow Jones - by 4%. Apple, Google and Nvidia shares suffered significant losses.

Trump announced a 10 percent tariff on all imported goods starting March 30, and additional duties of up to 50 percent will be imposed on certain countries starting April 9. A separate 25 percent tariff on imported cars went into effect Thursday night. The White House warned that this was just the beginning, and rates could rise even more if other countries decide to retaliate.

“This is the largest increase in the US tax burden since 1968. Americans have not yet felt the full impact, but businesses are already cutting production, freezing hiring and laying off workers,” Rezazadeh said. Automaker Stellantis has already temporarily laid off 900 workers at its US plants and has stopped operations in Canada and Mexico.

Amid the economic uncertainty, J.P. Morgan analysts predict hundreds of billions of dollars in additional costs for American companies and consumers. Economists are warning of the risk of a recession this year. “If these tariffs last even three months, a recession is inevitable,” said Luke Tilley, chief economist at Wilmington Trust.

In response to criticism, Trump compared his tariff policy to “emergency surgery”: “The patient was very sick. The surgery is done. Now let’s let the economy recover.”

However, as Ali Reza Rezazadeh notes, such “shock therapy” could prove fatal. “This is not a cure, but an experiment that could destroy trust in the United States as a stable economic partner,” he concluded.