President Trump's policies in the first half of 2025 cast doubt on many assumptions about the state of the US economy and its impact on world markets.
Challenges for the US Economy in 2025
Trump's tax and tariff measures have led to mixed reactions in markets. Instead of the expected economic growth, the investment climate became more unstable. The dollar index posted its worst results for the start of the year since 2005, causing concern among investors. The president's policy of imposing 'Liberation Day' tariffs only exacerbated the situation, sparking panic in financial markets.
US Stock Crash and Market Reaction
At the beginning of the year, investors believed that the growth of the American economy would support the stock market. However, from February to April, nearly $7 trillion in market capitalization was lost. The primary reason lies in intense competition from the Chinese company DeepSeek and Trump's political decisions that alarmed investors. But in April, easing some tariffs, Trump triggered a market rebound, giving new momentum to stocks.
Dollar vs Yen: Who's Stronger?
Amid the instability of the US dollar, the Japanese yen demonstrated impressive strengthening. Since the beginning of the year, the yen has risen almost 9% against the dollar, making it an attractive asset in times of risk. The Bank of Japan was among the few central banks expected to raise rates, thereby increasing investor interest in the Japanese currency.
Trump's policies had a significant impact on the market situation, demonstrating how quickly investment strategies and risk perceptions can change amid abrupt shifts in economic policy.
