Donald Trump has occurred amid significant market volatility. Investors and economists alike are grappling with the ramifications of Trump's tariffs, which have prompted widespread anxiety among consumers and businesses . The uncertainty surrounding these tariffs has led companies such as Tesla, Nissan, and Mercedes-Benz to employ strategic marketing tactics that leverage consumer fears about potential price hikes. This approach aims to stimulate immediate sales despite the prevailing low consumer confidence in the economy.
U.K.’s Department for Business and Trade said in response to CNBC’s queries that “The US is an indispensable ally and talks on an economic deal between the U.S. and the UK are ongoing.”
The spokesperson, however, said the department will not comment on any details of live discussions or set any timelines.
It normally takes many months of negotiations to hammer out trade agreements. Trump's agreements could be more like frameworks, with details to be determined down the line.
Trump rolled out a 10% tariff on all imported goods as well as what he called "reciprocal tariffs" — steep tariff walls aimed at punishing countries for their trading practices and volumes, and at drawing manufacturing to America.
Around 5 per cent of UK steel exports and 6 per cent of aluminium exports go to the US, according to the government.
While Britain hopes for an exemption from the higher 25 per cent tariffs, the trade deal is unlikely to see Mr Trump’s baseline 10 per cent tax on all imports lifted for the UK.
Meanwhile, China's response to Trump's tariff threats underscores a growing geopolitical tension. Chinese authorities have characterized these measures as detrimental mistakes and have pledged to retaliate against U.S. policies . They view the ongoing trade war not merely as a confrontation but as an opportunity to fortify their economic position on the global stage. Such dynamics contribute further to market instability, emphasizing how interconnected global economies are influenced by national policies.
In this context, while Trump prepares for his first trade deal reveal, it is essential to acknowledge that the markets remain shaken by his administration's unconventional approaches. The implications of this deal—whether perceived positively or negatively—will likely reverberate across international markets already destabilized by previous tariff announcements and retaliatory measures. Thus, investors will closely monitor these developments as they unfold in an increasingly uncertain economic landscape.
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