The story
The global economy is in shock after US President Donald Trump introduced a new wave of global tariffs – that’s taxes placed on goods imported into the US from other countries.
The baseline tariff for all countries is 10%, but there are extra tariffs on 60 countries which Trump calls the “worst offenders”. Trump has also put 104% tariffs on goods from China, the world’s biggest exporter.
It is unclear whether Trump is introducing tariffs to raise revenue and protect American industry, or as a way of getting countries to do what he wants them to do.
News headlines
Stocks tumble again as US hits China with 104% tariffs, Treasuries slammed
Reuters
As China and the US spar, countries brainstorm over how to cope with the trade war
The Independent
Trump’s game of chicken over tariffs leaves world guessing
BBC
Key words and phrases
tumble
fall
- The song was number 1 in the charts last week but this week it’s tumbled out of the top 10.
spar
argue
- My parents always spar with each other over who’s better at cooking.
game of chicken
a situation where two people do something risky to see who will back down first
- The companies are locked in a game of chicken over who’s going to lower their prices first.