TRUMP TARIFF THREAT TO OPEN UP INTERNATIONAL MARKET!
Donald Trump's tariff policies could significantly impact international markets. Here's a breakdown :
Tariff Proposals: Trump's administration has announced tariffs on specific countries and commodities, aiming to protect American interests. This move has sparked international responses, sending markets tumbling and increasing the risk of a global recession.
Global Economic Impact: According to J.P. Morgan Research, a 10% universal tariff and a 110% tariff on China could reduce global GDP by 1%. This could lead to:
Reduced Growth: Downgrades in growth forecasts outside of North America, with recessions expected in Canada and Mexico.
Inflation: Tariffs could boost Personal Consumption Expenditures (PCE) prices by 1-1.5% this year.
Sector-Specific Impacts:
Auto Industry: 25% tariffs on auto and auto parts could raise U.S. light vehicle prices by up to 11.4% on average.
Steel and Aluminum: 25% tariffs on steel and aluminum imports could drive up prices of various goods.
-Trade Agreements: Trump's tariffs have sparked retaliatory measures from other countries, including China, which has imposed an 84% tariff on U.S. imports.
Market Uncertainty: The tariff policies have created uncertainty, with J.P. Morgan Research predicting range-bound equity markets and a potential recession.
Key Statistics:
Global Recession Risk: 40% risk of a global recession, up from 30% at the start of 2025.
Tariff Revenue: The new tariffs could raise just under $400 billion in revenue, or about 1.3% of U.S. GDP.$TRUMP
- U.S. GDP Growth: J.P. Morgan Research expects 1.6% real GDP growth for the year, down 0.3% from previous estimates.#MostRecentTrade