“Permanent” damage possible
US markets rustle off-Trump golft and praises customs course
Trump’s customs offensive puts the US markets into a descent. The US president first goes a round of golfing. U.S. Federal Reserve boss Powell, however, expresses a significant warning.
The flat-rate tariffs of ten percent on goods from all countries announced by US President Donald Trump have come into force. An arrangement signed on Wednesday by the Republican now applies. Trump had announced the huge customs package at a weekly announced event in the rose garden. In addition, he had announced a complex mechanism that provides even higher tariffs for countries with which the USA has a particularly large trade deficit. This will apply from April 9th.
Certain goods are excluded from the tariffs. These include products for which other customs regulations already apply such as steel and aluminum products or cars and auto parts. In addition, some other products such as copper, medicines, semiconductors, wooden products or certain critical minerals are excluded. However, the White House had made it clear that Trump could soon also announce special tariffs for such goods.
Higher consumer prices and slower growth are expected
Trump had praised the day on which the tariffs were announced as a “day of liberation”. It is the most aggressive and serious step in the US president’s trade policy. The Republican promised that the tariffs will come back the “golden age” of the United States with the tariffs. According to his announcement, however, the shares went down. The head of the US Federal Reserve Fed, Jerome Powell, predicted higher inflation and slower growth for the USA.
A global trade conflict could plunge the global economy into a deep crisis. Some countries have already announced that they are the second largest economy in the world after the United States. Germany is also heavily dependent on exports and benefits from open markets. The EU Commission also prepared countermeasures. Trump had recently signaled willingness to talk and could not be ruled out to negotiate the tariffs with other countries.
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Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
