Trump’s Tariff War 2.0: So It Begins

From Economies To Markets

In the classic film The Lord of the Rings, King Théoden stands upon the battlements of Helm’s Deep as the forces of Saruman descend. With a grim determination, he utters the words, “So it begins.”

This moment of eerie calm before an inevitable clash mirrors today’s financial world, where global markets brace for an all-out trade war initiated by President Trump. With a sweeping announcement of broad-based global tariffs, today marks what Chief Market Strategist Greg Crennan of Golden Coast Consultants has long warned of: the opening shots of a trade war with vast economic consequences in previous article here (Tariff Storm, Return Of Tariffs, Tariffs with the Devil)

Global Trade War Begins

Trump’s new tariff plan strikes at the heart of the global economy, with the most significant reciprocal duties aimed at China, the European Union, Vietnam, Taiwan, Japan, India, and South Korea. Among them, China faces a staggering 34% tariff—stacked on top of the 20% hike imposed in February, bringing the total to an unprecedented 54%,

What does this mean? Simply put, as we highlighted here PAIN. From Apple products to Home Depot tools, companies must now decide how to absorb or pass along the cost of these tariffs. But this is not merely a tax on nations—it is a tax on businesses.

Trump justifies these measures as a way to counteract unfair trade practices and bring manufacturing back to the U.S. However, history tells us a different story. Looking back at the 1920s, protectionist policies such as the Smoot-Hawley Tariff Act of 1930 worsened the Great Depression by triggering retaliatory tariffs from other nations, strangling global trade, and decimating American exports. Which we breakdown exclusively HERE.

The Ripple Effect: Markets in Turmoil

For corporations, the strategic options are grim:

1. Pass the cost to consumers – Risking demand destruction in an already crashing economy.

2. Cut costs – Downgrading materials & manufacturing inferior products.

3. Layoffs – Reducing workforce expenditures to maintain profit margins.

4. Absorb the costs – Crushing bottom-line profits, leading to stock crash.

AI Stocks (Tesla, Nvidia Apple) Face Massive Crash in Earnings, Revenues and Profits)

One of the hardest-hit companies will be Apple, whose supply chain—heavily dependent on China, Vietnam, and India—now faces heavy levies at every turn. Apple, currently trading at 35 times earnings, is already overvalued based on its slowing revenue growth. The company has been struggling with declining demand for its flagship iPhones, with shipments falling year-over-year as consumer interest wanes and competitors like Samsung and Chinese brands aggressively eat into its market share. Apple's recent foray into AI has also been underwhelming, with its AI-powered features failing to generate excitement or drive new sales.

(For a full Apple break down check out our article HERE )