Browsing: USA politics

North American politics continues to feature heavily on the front pages as reports suggest a UK-US trade deal is a secondary priority, potentially harming the Labour government’s plans to secure a deal before the mid-May deadline. There are plenty of pictures of the Canadian election on the front pages as Mark Carney rides a patriotic surge to victory! Turns out Canadians don’t want to be bullied by Donald Trump and the threats of becoming the 51st state have forced the public into the arms of the Liberal party, which not long ago, looked certain to be defeated at the polls.

Politics continues to dominate the American headlines this morning, 24 April 2025, as Donald Trump signals the tariff war is slowing down, which has settled the markets a bit, along with Trump’s statement that he has no plans to fire the Federal Reserve boss, Jerome Powell.

Trump’s comments on Ukraine, and his new US-led deal, which would require Ukraine to hand over Crimea to Russia, are making national and international headlines. Trump has said he will walk away from Ukraine if a deal isn’t reached soon.

Donald Trump announced a temporary 90-day suspension of certain tariffs less than a day after they came into effect. Many see it as the president backing down from his policy after US government bonds were being sold off, and the president likely under pressure from his rich and powerful friends (Elon Musk).

Whilst he came back from the brink for most countries he had hit, all countries (interestingly, Russia was not hit with tariffs) still face a blanket 10% tariff.

The administration intensified its stance on China by elevating tariffs on Chinese imports to 125%, underscoring a complex and strained U.S.- China trade relationship.

China responded firmly to the increased tariffs, maintaining a resolute position and implementing retaliatory measures. The Chinese Commerce Ministry announced an 84% tariff on all U.S. goods, signaling Beijing’s unwillingness to yield to U.S. pressure. This escalation has heightened concerns about a prolonged trade conflict between the world’s two largest economies.

The financial markets have reacted with notable volatility to these developments. Following the announcement of the tariff suspension, global markets experienced a relief rally. However, this optimism is tempered by underlying uncertainties, as analysts caution that the fundamental issues driving the trade tensions remain unresolved. The bond market, in particular, has exhibited signs of distress, with the U.S. 10-year Treasury yield climbing from under 4% to 4.5%, reflecting diminished confidence in U.S. fiscal stability.

Amid these economic fluctuations, there have been murmurs of potential market manipulation.

The current trajectory of U.S. trade policy, characterized by abrupt shifts and escalating tariffs, has prompted warnings from economic leaders. JPMorgan Chase CEO Jamie Dimon cautioned that the ongoing trade war could precipitate a U.S. recession this year.