- President Donald Trump is expected to apply sweeping tariffs on US imports on April 2, which he has called “liberation day”.
- The potential effects of new tariffs on trade relations, domestic industries, and global markets.
- Major developments in the crypto space, including regulatory changes, price movements, and any specific news related to XRP.
What’s Coming Next?
As Donald Trump going to address, US trading partners choose to strike back with reciprocal retaliatory measures, a global trade war will boost inflation and dampen growth, experts warn.
Nobody quite knows what’s coming next. What percentage will Donald Trump select for his next phase of tariffs? Ten percent? Twenty percent? Or the 25 percent tariff he has imposed on steel, aluminium and auto imports?
Question marks also exist about whether Donald Trump will implement a blanket tariff, or if he’ll impose individual increases for nations that might be open to negotiation the so called “reciprocal tariff” strategy.
Trump’s on again, off again trade pronouncements since February have spooked markets, with investors trying to estimate whether his tariffs are permanent, or a negotiating ploy to get money and concessions out of economic allies.
What Can Be Expected on April 2nd?
Donald Trump’s April 2 tariff threat is the latest of a string of trade salvos made by the US president since he returned to the White House in January.
Though news of Trump’s “liberation day” trade policy is uncertain, his government has vowed to target nations with duties equivalent to the tariffs and non tariff trade restrictions, such as subsidies, imposed on US goods.
Trump has stated that his yet to be announced tariffs will be against “all countries”, dashing expectations that only economies with the largest trade deficits against the US would be hit.
However, if tariffs can be negotiated, and reduced in the long run, that will provide space for other country trade levies.
Market’s Position After The Announcement
Trump’s statements about tariffs have unsettled financial markets, with investors unsure whether he will make his tariffs permanent or see them as a negotiating bargaining chip in forthcoming trade talks.
On Sunday, market anxieties were compounded after Trump asserted his tariffs would apply to “all countries”. Asian equities dropped sharply on Monday in expectations of further upsets to worldwide trade. TS Lombard managing director Dario Perkins explained to Al Jazeera that it would be “strange if markets reacted aggressively to Trump’s ‘liberation day’ declaration. He’s been going on about this for three months already.
Still, he pointed out that “most investors buy into the idea that hyper globalisation has been good for corporate profits and efficiency, so if you’re looking at reversing that, it would be a negative for international supply chains and stock markets.”
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