Governments across the world continue to take urgent steps to prepare their economies for a global downturn amid an escalating trade war between the United States and China, The Wall Street Journal reported Friday.
China announced Friday it is raising tariffs on U.S. goods from 84% to 125% beginning Saturday in retaliation for President Donald Trump upping universal tariffs on China to 145% this week.
In response, central banks from Europe to Asia are cutting interest rates, countries have announced emergency support measures for auto sectors, while other governments are urging consumers to buy more locally, according to the Journal.
Canada is planning to take $5.7 billion in funds from tariffs it levied on the U.S. to help pay auto industry workers affected by U.S. tariffs, according to the report.
China is taking steps to support its factories and the People's Bank of China has let the yuan weaken against the dollar to aid exports, the Journal reported.
Central banks in India, New Zealand, and the Philippines announced interest rate cuts, while South Korea unveiled $2 billion in emergency support measures for the auto sector, according to the report.
Trump on Wednesday issued a 90-day pause on many of his new tariffs, save for China, which he escalated for its retaliatory answer to his tariffs. The European Union followed Trump's pause with a 90-day pause in order to give “negotiations a chance” with Trump.
Meanwhile, the White House said 75 countries have reached out to negotiate trade deals.
India said it finalized terms of reference for trade talks with the U.S. Japan has a trade task force that's expected in Washington next week. Vietnam is prepared to crack down on Chinese good goods shipped to the U.S. through its country, Reuters reported.
"The president made it very clear: When the United States is punched, he will punch back harder," White House Press Secretary Karoline Leavitt told reporters on Friday.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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