It is a rollercoaster on the financial markets. And it is all due to the American President Donald Trump. He again caused a commotion by unexpectedly revised his controversial import duties. The message of the White House to other countries is clear: “Anyone who does not take retaliation measures is rewarded.”
A conscious strategy?
Where different countries with different rates were first confronted, the Trump administration now announced a universal rate of 10% for almost all trading partners. The other extra taxes go on a break for many countries, as was announced yesterday. In addition to China, it is the exception, and still has to deal with a tough levying of 125%.
With the promotion, Trump tries to control trade relationships again. This is partly successful: countries such as Canada and Mexico are excluded from the extra rate increase and retain their existing agreements within the USMCA Trade Convention.
This sudden change of course in the policy came as a surprise for many. Only a few hours before the announcement, Trump on Truth Social announced that there would be no relaxation. Yet the tide turned quickly. According to his advisers, the hard tone of the past week was part of a “strategy”, intended to put pressure on opponents.
Whether it is a smart negotiating tactics is the question. The risks for global economic stability are in danger of becoming visible. Whether that will really happen? That will have to be apparent in the coming weeks.
Crypto and shares explode
These developments are significant for the world economy, and certainly also for the crypto industry that is sensitive to geopolitical uncertainty. And that is clearly reflected in the prices. Bitcoin (BTC) recorded an increase of 5.8% in the last 24 hours. And Ethereum (ETH) and XRP also did well with rises of 8% and 9.2% respectively in the same time frame.
The stock markets went as a rocket yesterday. For the S&P 500 it was the best trading day since 2008 and for Nasdaq even since 2001.
Source: https://newsbit.nl/witte-huis-verandert-toon-geen-vergelding-en-je-wordt-beloond/
