Global Markets Reel from President Trump's Sweeping Tariffs

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Sentence 1:

On April 2, 2025, U.S. President Donald Trump announced extensive tariffs, including a 10% baseline on all imports, with higher rates for specific countries such as a 34% tariff on Chinese goods.

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This move has led to significant turmoil in global financial markets, with the Dow Jones dropping over 2,200 points and the S&P 500 declining by 6%, erasing trillions in market value.

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China responded with a 34% tariff on American imports, escalating fears of a global trade war.

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Economists warn that these tariffs could reduce U.S. economic growth by 2 percentage points and increase unemployment to 7.5%.

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In New Zealand, Prime Minister Christopher Luxon stated that the country is "relatively well positioned" to weather the impact, opting not to impose reciprocal tariffs to avoid adding to domestic inflation.

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