Possible Trade Conflict: Effects of Trump's Decisions

by Giorgi Kostiuk

2 years ago

A closer look at Donald Trump’s proposed tariffs and their potential consequences for the global economy.

New Tariffs and Their Impact

Donald Trump announced plans for a 25% tariff on goods from Canada and Mexico and 10% on Chinese imports. These countries are the largest trading partners of the U.S., with imports totaling over $1.2 trillion in 2023. Economists warn such tariffs may drive inflation and interest rates up, leading to higher consumer prices.

Tariffs are paid by importers, not the countries that export the goods.

Impact on Currency Markets

Trump's aggressive trade policies have already affected currency markets. On Thursday, the USD/JPY pair dropped, with the Japanese yen strengthening by 2% against a weaker dollar. This indicates a move towards safe haven assets and a long-term bearish trend for the dollar.

Reaction of the U.S. Federal Reserve

The U.S. Federal Reserve's minutes confirmed that inflation is moving towards the 2% target. Plans to lower interest rates are aimed at supporting economic growth and labor market recovery.

Trump's initiatives could significantly impact the global economy and currency markets, necessitating close monitoring of the administration's next steps.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Tier I

Requires 25% Tier Progress to Claim

Meme Cache

Tier I

Requires 50% Tier Progress to Claim

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Tier I

Sector: #18291

25%

50%

75%

100%

Tier II

Survivors rescued:

0 / 600

Survivors

0/0

Transmit Signal

Broadcast this sector's coordinates to other rescuers.

Other news

Senator Blumenthal Seeks Information from Cantor Fitzgerald on Tether Dealings

Senator Richard Blumenthal has requested Cantor Fitzgerald to provide records related to its business relationship with Tether, focusing on the financial gains of Commerce Secretary Howard Lutnick's family.

Satoshi Nakamura14 hours ago

Ledger Halts Sales Amid Fund Loss Investigations

Ledger has paused sales and shipments of its hardware wallets after reports of fund losses from customers in Southeast Asia who purchased devices from CryptoBilis.

Jesper Sørensen17 hours ago

Project Eleven and Quantus Collaborate on Strongpoint for Future Crypto Custody

Project Eleven has partnered with Quantus to enhance crypto custody solutions through the integration of the Quantus Network into Strongpoint, targeting support for post-quantum cryptography by Q1 2027.