Trump Considers Tariff Exceptions While Reinforcing His Trade Strategy
Donald Trump considers tariff exceptions to his 10% tariff policy for certain strategic allies. While leaving room for some “obvious reasons,” he emphasized that the 10% rate represents a “solid floor” in future trade negotiations.
Market Turbulence and Sudden Reversals
The remarks came at the end of a volatile week in financial markets. Trump imposed new tariffs on dozens of countries but reversed some within hours after seeing market jitters and warnings of potential global economic harm.
China, the Main Target of Sanctions
Despite the fluctuations, Trump maintained a tough stance on China, imposing a 145% tariff—the highest among all trade partners. Meanwhile, the 10% base rate remains in place for most countries, which are now seeking to renegotiate with the White House.
Market Reaction to Fed’s Intervention
The S&P 500 rose 1.8% after news that the Federal Reserve might intervene to curb volatility. Ten-year Treasury bonds also rebounded, marking their strongest weekly gain in two decades.
Can the U.S. Win a Tech and Trade War Simultaneously Under Trump?
Under President Donald Trump, the United States has escalated the tech and trade war with China to a higher level. Export restrictions…
Recession Fears and Dollar Threats
Despite the brief recovery, fears of a global recession due to the tariff policy persist. Economists warn the strategy could weaken the dollar’s status as the world’s leading safe-haven asset.
Trump Responds Confidently, Downplays Risks
Trump dismissed market concerns and reaffirmed the strength of the dollar. He also defended his moves in the bond market, claiming that any downturns were quickly corrected by his actions.
Tensions with China and Future Outlook
China retaliated with a 125% tariff plus an additional 20% levy on U.S. goods. Although Beijing said it won’t escalate further for now, it reaffirmed its readiness to respond. Trump, meanwhile, remained optimistic: “Something positive is coming,” he declared, praising President Xi as “a formidable leader.”
