Browsing: Donald Trump

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.

Donald Trump has backed down on his tariffs (higher than the baseline 10%) on countries that did not retaliate against the levies. The US president announced via social media that there would be a 90-day pause on those tariffs and they would instead be dropped to the blanket 10% rate. But since China did retaliate, Trump announced that the tariffs on China would be hiked to 125%.

Much of the global media sees the announcement of Trump backing down from the trade war he started, likely amid US government bond sell-offs.

Tuesday’s newspapers are, unsurprisingly, focused on the market chaos caused by last week’s US tariffs. Several headlines look at the growing trade war between the two largest economies in the world as China retaliated with their own tariffs on the US – which led to Donald Trump telling them to back down from their tariffs or face a further 50% tariff on Wednesday. China has said it won’t back down. 

Friday’s UK headlines are similar to headlines from around the world: the fallout from Donald Trump’s tariffs after “trillions” have been wiped off the global stock markets. 

On Wednesday, Trump announced a baseline tariff on almost every country in the world of at least 10% – whilst some countries face much higher levies, with the EU being hit with 20%. 

Since the announcement, global markets have experienced significant declines, with both the US and European markets reporting their worst one-day losses since the COVID-19 pandemic and raising concerns about a potential recession and international retaliation. Economists are warning of a ‘spiral of doom’, suggesting that retaliatory measures could lead to further economic destabilisation. 

Elsewhere, a probe into the bitter dispute surrounding Prince Harry’s charity Sentebale. The Charity Commission said it had opened a case to examine “concerns raised” about Sentebale, following claims made by its head, Sophie Chandauka. Prince Harry has said he hopes the watchdog will “unveil the truth”.

Trump announces fresh wave of US tariffs – Almost all of Thursday’s headlines are dissecting the tariffs announced by the US president yesterday. The UK was hit with a baseline 10% tariff, whilst the EU (who are preparing to retaliate) were hit with a 20% levy – some countries fared even worse with fees as high as 40%.

The UK newspapers generally express relief that the tariffs were not as bad for the UK as expected, with right-leaning media highlighting Brexit’s role in saving Britain from the 20% levy for the EU. The tariffs are set to come into effect on Saturday, with some headlines reporting there is still wiggle room for a deal to be carved out between the UK and US before the tax comes into effect.

Thursday’s headlines are, of course, dominated by yesterday’s news that the US will introduce a baseline 10% tariff on the world, including the UK and other countries, and are facing far higher tariffs, including the EU being hit with a 20% levy. 

The headlines are in general agreement that the UK being hit with the baseline tariff is far less severe than what was expected, and there could be some wiggle room as the tariffs don’t come into effect on Saturday.

Almost all the UK front pages are dominated by the announcement of the latest US tariffs. The US media started reporting yesterday that a blanket 20% tariff on all non-American goods is set to be introduced. 

Much of the UK media is speculating on how the tariffs will impact the UK economy and the prime minister’s attempts to secure a last-minute deal.