Although the phone call on Thursday between the presidents of China and the U.S. helped alleviate immediate fears of an escalating trade war, uncertainties about tariffs and broader trade tensions remain a key concern for global investors.
The U.S. decision to double tariffs on steel and aluminum imports to 50%, which was implemented on Wednesday, has received strong criticism from key trading partners, including India, Canada, the European Union, and Mexico, all of whom have threatened retaliatory measures.
With trade negotiations set to continue next week, the risk of prolonged disputes looms. If talks break down or tensions escalate further, the global economy could face new headwinds, potentially weakening equity markets and increasing demand for safe-haven assets like Gold.
