President Trump’s chaotic introduction of tariffs spooked financial markets
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On April 2, President Trump announced swingeing “liberation day” tariffs. On Wednesday he paused the biggest increases for 90 days, replacing them with 10 per cent baseline levies plus 25 per cent for cars, car parts, steel and aluminium, but intensified his trade war with China which, unlike other countries, had issued retaliatory tariffs. Where does that leave us, apart from certain that America has a dangerously unpredictable president?
No. The dollar is weak, the cost of US government borrowing has gone up again and stock markets are unsure. Investors do not trust Trump’s judgment and fear further market-damaging decisions. Even when reining back he was threatening further tariffs on products such as pharmaceuticals.
• Tracked: Trump’s approval rating
After liberation day, China raised its
