Thu, 10 Apr 2025

Thu, 10 Apr 2025 Trump may have backtracked, but this is far from over

There is an anxious wait to find out what comes next - and if a currency war will follow.

* The US and China's trade war has caused chaos worldwide, with a universal 10% tariff on goods sold between countries.
* President Trump's decision to roll back tariffs has not alleviated concerns, as companies struggle with uncertainty over future trade policies.
* The world's two largest economic superpowers are engaged in a "rutting stags" standoff, with massive hits to business and trade between them.
* Chinese factories will likely close, workers will be laid off, and Beijing may need to implement a stimulus package to compensate for the loss of GDP.
* In contrast, countries like Canada and Europe may see price cuts due to reduced import costs from China.
* The US bond market has been affected by the trade turmoil, with interest rates rising to 5%.
* Trump's tariff policy is under scrutiny, with many experts doubting its effectiveness and questioning whether it will lead to a mutually assured economic destruction between the two nations.
* The US needs allies like the EU and UK on side in terms of China, but has struggled to explain its tariff policies and has created uncertainty for businesses worldwide.
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