S&P 500 down more than 10% in 2 days while Trump increases the world order

China, which Trump has already reached 20%prices, announced its intention to retaliate. Beijing promised to impose a rate of 34% on American products next week, including agricultural products. China has calibrated its prices to match Mr. Trump’s decision to add a 34% tax to Chinese imports.

Tit-for-tat gave the financial markets to the financial market, as Wall Street counted with the growing chances of a global commercial sampling escalation. At the closing bell, the S&P 500 had dropped by almost 6%, bringing it closer to a lower market, a term of Wall Street widely used for a drop of at least 20% of its peak. The Nasdaq, heavy with technology, fell 5.8%, pushing it into the territory of the bear market.

While China was targeting the United States, Ngozi Okonjo-Iweala, Director General of the World Trade Organization, warned on Friday against a “cycle of reprisals which lead to a new drop in trade”. In the United States, Jerome H. Powell, the president of the federal reserve, has struck his own slowdown on the unpredictable trajectory of the economy.

“Although uncertainty remains high, it now becomes clear that pricing increases will be considerably greater than expected,” said Powell. “The same goes for economic effects, which will include higher inflation and slower growth.”

But Mr. Trump responded on the day of chaos taking a provocative tone. Having decamped from Washington to Mar-A-Lago, his house in Florida, he declared Truth Social: “My policies will never change.”

Instead, the president insisted in a different article than his strategy “already worked” because he organized a newly released and better than expected job report, which reflected hiring increased during the month preceding the announcement of his prices.

At one point, the president even released the video of another user who argued that “Trump is deliberately crushed the market”, in order to force the Fed to reduce interest rates. He then called for Mr. Powell to do exactly that, demanding that the independent president of the Central Bank “stops doing politics”.

And Trump finally turned his attention to China, attacking the country for having “played badly” by retalling against the United States. The president and his collaborators previously reported that they could increase their rate rates if other nations seek exact reprisals on American goods.

The global race in many ways has highlighted the weight of Mr. Trump’s prices and the importance of his large aspirations to recalibrate the global trade system. The White House considers these levies as essential to the reset of American trade relations, which, according to the president, is unfair, while stimulating the manufacture and the increase in new American income.

But the prices, which are taxes on imports, threaten to fall hard on companies that could face new costs to produce their goods. This, in turn, could hammer consumers, who are likely to exhaust the burden on any price increase. Economists largely believe that the result could be an increase in the inflation rate, and a slowdown in consumer spending and commercial investments, which crimples American growth and pushes the economy in a recession.

“The markets express a vote without confidence in the new pricing regime,” said Joe Brusuelas, principal economist and chief of the RSM consulting company. He added that Mr. Trump’s comment on Friday “only adds to dismay and to fear that there is no strategic roadmap”.

But Mr. Trump and his best employees have escaped these austere projections in recent days. Abullating through the information on the cable, they rejected the flow and the flow of the markets and recognized the possibility that the prices can create short -term economic pain, that the president compared to a painful medical operation but necessary for a “sick” patient.

The administration and its conservative allies also worked to divert criticism from economists, depicting them on several occasions as opponents who had wrongly judged the president’s agenda in the past.

“I think that it is very clear that the rhetoric of the economic community, in particular, is almost entirely ideological and out of proportion to the real type of risk-reversal calculation,” said Oren Cass, chief economist of American Compass, a conservative economic reflection group on Friday.

World leaders, American politicians and others have rejected this point of view, saying that Mr. Trump’s approach threatened to weaken the world economy and soap prices as much from the world to return to a feeling of balance after two years of rapid inflation.

Okonjo-Iweala, OMC Managing Director, warned Trump’s policies in a statement on Friday “could lead to an overall contraction of around 1% in global commercial volumes of goods this year, representing a revision of almost four percentage points of previous projections”.

California reported that he would try to negotiate his own trade agreements, while Governor Gavin Newsom, a democrat, sought to protect local agriculture and other companies. In a statement, Mr. Newsom said that the president’s tactics would be felt by “fairly deep means to real people, including those who voted for Donald Trump and are now betrayed by this same administration”.

Even video games could not escape the fray: the Nintendo of Japan announced that it would delay the presale of its console to come much widely awaited, the Switch 2, because it quoted a need to “assess the potential impact of prices and changing market conditions”. Trump said Japan would face 24% on its exports to the United States.

Some foreign governments have also set up a last -minute race to understand how or if, to retaliate, while trying to persuade Washington to relax its future taxes.

Maros Sefcovic, the Commerce Commissioner for the European Union, said on Friday that he had a “frank” exchange with the emissaries of Mr. Trump, displaying on the X-Média Social site, “I was clear: the American rates are damaging, unjustified.”

Earlier Friday, Trump said that he spoke by phone with Lam, the secretary general of the Vietnam Communist Party, who should see a 46% price on his exports to the United States from next week. Through Mr. Trump’s account, Vietnam “wants to reduce their prices to zero if they are able to conclude an agreement with the United States”, although the president has not explicitly said if he would accept such an agreement.

The Trump administration sent mixed signals on his desire to conclude an agreement: some of Mr. Trump’s advisers said they did not intend to haggle, but the president himself told journalists earlier in the week he could be opened to negotiation if the United States had received something “phenomenal” in return for relaxing prices.

The reports were brought by Ana Swanson,, Laurel Rosenhall,, Colby Smith,, Zachary Petit And Keith Bradsher.