The recent tariff policy of U.S. President Donald Trump is causing significant changes in the global financial markets.
$4.9 Trillion Wiped from Global Markets by Tariff Policy
Under the International Emergency Economic Powers Act, President Trump's administration implemented a 'reciprocal tariff' policy. Countries such as China, India, and South Korea are facing significant tariffs. Analysts estimate global market value losses at around $4.9 trillion. The financial turbulence is further emphasized as the U.S. stock market shrank by $5.9 trillion in two days. U.S. automakers and tech companies are facing heightened costs due to increased tariffs on imported parts.
Tariff Comparisons and Potential Shift to Cryptocurrencies
Experts compare today's tariffs to the Smoot-Hawley Tariff Act of 1930, which exacerbated economic downturns during the Great Depression. Historically, tariff policies have led to increased volatility and offer insights into potential economic outcomes. This policy could drive investments toward alternative assets, including cryptocurrencies, amidst rising inflation.
Experts' Opinions and Predictions
Supporters see this move as fulfilling campaign promises, but critics emphasize potential long-term harm. President Trump acknowledged the global turbulence but urged Americans to remain patient.
Trump's tariff policy elicits mixed reactions and consequences for global markets, both short-term and long-term, leaving experts pondering the future economic situation.
