Introduction
Investors prepared for possible tariffs from Donald Trump, which left the markets anxious and uncertain.
Context
The anticipated tariff announcements, part of Trump’s initiative called “Liberation Day,” were aimed at countries the former president accused of unfair trade practices against the U.S.
Developments
Last week, the announcement of extensive auto tariffs set at
25 percent heightened fears of a trade war. Economists cautioned that these tariffs could impede economic growth and reignite inflation, which could ultimately affect central bank decisions regarding interest rate cuts.
Conclusion
The looming threat of tariffs has created an environment of uncertainty, with potential repercussions for the economy and financial markets. Investors are closely monitoring the situation as further developments unfold.