visuals6x / Depositphotos.com
Trump pauses global tariffs, sparks market rebound — but China duties remain
U.S. President Donald Trump has hit pause on his global tariffs for 90 days, triggering a rebound in oil prices and a rally on North American stock markets.
The move follows steep market losses and growing fears of a U.S. recession. Trump now claims the tariffs were a negotiation tactic, despite initially framing them as a tool to bring manufacturing jobs back to the USA.
Economists now widely view that goal as an impossibility, given Trump’s frequent and often unpredictable policy announcements and reversals which do not lend themselves to long term planning of manufacturing and a change in supply chain logistics.
Only China remains subject to the import duties being imposed by the USA. This decision is fueling tensions in an already volatile trade war. Frank Øland, Global Chief Strategist at Dankse Bank, one of Europe’s largest financial institutions, said the standoff could inflict severe and lasting damage on both economies.
The partial reversal lifted investor sentiment Wednesday. West Texas crude rose to around $63 a barrel, the Toronto Stock Exchange surged more than 1,200 points, and the Dow Jones Industrial Average jumped 2,962 points to close at 40,608.45.
Still, the effects of the China tariffs are rippling through U.S. retail. The Economic confrontation with China has already caused Amazon to cancel inventory orders of Chinese goods, putting nearly 40 per cent of its U.S. revenue at risk.
Comments