The global trade war continues to escalate as April 13, 2025, brings another wave of tariff disputes, retaliatory measures, and economic uncertainty. With China maintaining its 125% tariffs on U.S. goods, and President Donald Trump reaffirming his administration’s commitment to semiconductor tariffs, the world is bracing for further disruptions in supply chains and financial markets.

U.S. Semiconductor Tariffs Announcement

On April 13, President Donald Trump clarified that semiconductor tariffs will be introduced soon, despite earlier reports suggesting exemptions for smartphones, computers, and chips. Trump stated that these products were not exempted, but rather moved to a different tariff category under Section 232 of the Trade Expansion Act of 1962.

Trump’s economic advisers confirmed that semiconductor tariffs will be part of a broader national security strategy, with details expected to be announced within the next week.

China’s Response

China’s Commerce Ministry reacted to the U.S. semiconductor tariff announcement, calling it a “small step” toward correcting a misguided policy. Beijing urged the U.S. to completely cancel reciprocal tariffs, arguing that they harm global trade stability.

Despite diplomatic efforts, China has maintained its 125% tariffs on U.S. imports, including agricultural products, automobiles, and technology exports.

European Union’s Retaliatory Tariffs

The European Union has confirmed that retaliatory tariffs on U.S. steel and aluminum will take effect on April 13, with rates ranging from 4.4% to 50%. The EU’s response is aimed at countering Trump’s trade policies, which have disrupted European industries and raised concerns about long-term economic stability.

Market Reaction

The stock market responded negatively, with Wall Street experiencing sharp declines:

• The Dow Jones dropped more than 1,000 points at opening on April 13, marking one of the worst trading days since 2020.
• The S&P 500 fell 4.5%, reflecting investor concerns over prolonged trade disruption.
• Oil prices dipped below $60 per barrel, as investors brace for economic slowdown.

UK Steel Industry Faces Crisis

The UK steel industry has been hit hard by the 25% tariffs imposed by the U.S. on British steel imports, which came into effect on March 12, 2025. These tariffs have severely disrupted exports, as the U.S. is the second-largest market for UK steel, accounting for 9% of total steel exports by value and 7% by volume.

The impact of these tariffs has been compounded by global excess steel capacity, which is expected to reach 721 million tonnes by 2027, leading to oversupply and price declines. The UK steel industry is already struggling with high energy costs and weak domestic demand, making the U.S. tariffs an additional burden that threatens the survival of British steelmakers.

UK Government’s Emergency Response

Recognizing the severity of the crisis, UK Prime Minister Keir Starmer has taken unprecedented action, recalling Parliament for an emergency Saturday session to approve legislation aimed at saving British Steel.

The legislation will:

• Block British Steel’s Chinese owners, Jingye Group, from closing blast furnaces at the Scunthorpe plant.
• Give the UK government control over British Steel’s operations, ensuring that workers are paid and raw materials are secured.
• Prevent Britain from becoming the only G7 country without primary steelmaking capacity.

The Scunthorpe plant, which employs 2,700 workers directly, is the last remaining UK factory that produces steel from raw materials using blast furnaces. Most other UK steelmakers have shifted to electric arc furnaces, which use recycled materials rather than iron ore.

Economic Concerns

• JPMorgan CEO Jamie Dimon warned that the tariffs could increase inflation and slow economic growth, raising concerns about a potential recession.
• BlackRock CEO Larry Fink echoed similar sentiments, stating that many CEOs believe the U.S. is already in a recession.
• The Reserve Bank of India (RBI) announced a 25 basis point cut in interest rates, citing global economic uncertainty caused by the tariffs.

What’s Next?

With trade tensions at an all-time high, businesses must prepare for supply chain disruptions, and consumers may soon feel the effects through higher prices on imported goods. Governments worldwide are scrambling to secure trade agreements, but a resolution remains uncertain.