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China and Europe, longtime rivals on everything from wine tariffs to 5G standards, joined hands in what many diplomats call the “Impossible Alliance.” The spark was Trump's tariff barrage, but the fuel was years of eroded trust. On April 2, the White House imposed a staggering 145% tariff on Chinese semiconductors, industrial chemicals, and, to top it all off, electric scooters. Markets reacted instantly. Within hours, Beijing responded with a 125% tariff on everything labeled “Made in the USA,” and added an invitation to the European Union: “Join us or prepare for collateral damage.” Wall Street lost $480 billion in half a day, oil suffered its second consecutive weekly decline, and the main Asian indices experienced their worst day since 2008. In Brussels, the phones rang nonstop, but no one reached Washington. European Commission President Ursula Vonder Leyen; Spanish President Pedro Sánchez; and French President Emmanuel Mácron took discreet calls from President Xi. His message was disarmingly simple: “In a tariff war, there are no winners, only partners who remain standing when the smoke clears.” Within days, European Union trade ministers drafted a working document to create a euro-yuan clearing channel that would bypass the “weaponized” dollar. Canada also felt the chill. Tariffs on aluminum, lumber, and even maple syrup had already dented Ottawa’s confidence; the April offensive convinced Prime Minister Mark Carney that relying on a single export highway was reckless. Canadians now support building liquefied natural gas terminals on the West Coast aimed at Asia. Energy majors are designing pipelines that no longer end in Seattle but in Shanghai. The once unthinkable question—“Should we pivot toward Beijing?”—has moved from expert panels to parliamentary committees. The financial consequences have been biblical. Since the tariff bombardment on “Liberation Day,” the combined capitalization of US stock markets evaporated by $5 trillion—as one Mexican commentator joked, “as if we were setting money on fire.” The S&P 500 fell 6.2%, the Nasdaq plummeted 9.4%, and the Dow had its worst session since the dark spring of the pandemic. For those who believed that March's moderate inflation heralded calm waters, April was a treacherous wave. In this video, I explain it in the simplest way. If you liked it, don't forget to LIKE and comment! Subscribe and activate the bell to continue learning more! --- Your Economics Playlist: • EEUU, RUSIA, CHINA y el mundo --- Request work: [email protected] --- Kotaro's Personal Life: /