Hey there! Have you ever traded Pokémon cards with your friends? Imagine if one day, someone decided to charge a fee every time you tried to trade. That might stop some trades from happening, right? Well, something like that happened in the real world, and it’s affecting countries all over the globe!
On Thursday, President Donald Trump announced new tariffs, which are like taxes, on goods coming into the United States from other countries. This means it’s more expensive for other countries to sell their products in the U.S.
Because of this announcement, stock markets around the world went down. Investors are worried that these tariffs might hurt global trade and slow down economies.
In Europe, markets in Germany, France, and the United Kingdom fell. In Asia, countries like Japan, South Korea, and Australia also saw their markets drop.
In Japan, big companies like Sony and Toyota saw their stock prices go down. The Japanese yen, which is their currency, became stronger compared to the U.S. dollar.
The Chinese mainland was hit especially hard with an additional 34% tariff, making it even more challenging for Chinese companies to sell their products to the U.S.
Some experts are worried that these tariffs could lead to a global recession, which is a time when economies shrink instead of grow.
But there’s a bit of hope! Some countries might introduce new plans to help their economies stay strong despite these changes.
Oil prices went down too, and the prices of some other things like bonds (which are like IOUs from governments) changed a lot because people are unsure about the future.
Trade is important because it allows countries to buy and sell things they need. When tariffs are added, it can make buying and selling more difficult. Many people are watching closely to see what happens next!
Remember, even when things seem uncertain, countries and leaders often work together to find solutions!
Reference(s):
Global markets rattle as Trump escalates trade war with new tariffs
cgtn.com
