Tariff Rout Continues Amid Failed Rebound

Team Veye | 09-Apr-2025

Trump going ahead with 104% cumulative tariff drove U.S. stocks to tumble yesterday. This after they were signalling strength earlier. The S&P 500 which had initially risen 4.1%, quickly reversed and closed 1.57% down, hitting the lowest close in almost a year.

Tariff has hit global markets alike amidst Trump administration’s simultaneous focus on negotiating with Japan and South Korea, according to Kevin Hassett, head of the White House National Economic Council. Italian Prime Minister Giorgia Meloni is also expected to meet with Trump next week.

With an unrelenting Trump and China vowing to fight to the end,
a full-scale trade war with China and the US as key players could be in the offing. US is running a trade deficit with China, though its reliance on China for trade has been declining.

Trump also revealed his intention to revitalise the coal sector while promising to more than double the electricity production to meet the increasing demands driven by AI and Data centres.

(Source: Reuters)

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