Bloomberg Daybreak: Europe Edition Tariffs On ‘All Countries’, Stock Slump Deepens & FX Turmoil Fears
Mar 31, 2025
Alice Atkins, Bloomberg's FX and rates reporter, shares her insights on the latest turmoil in the foreign exchange market. She discusses President Trump's broad tariffs and the potential economic fallout, emphasizing the deepening stock market slump. Concerns around a ‘liquidity mirage’ highlight challenges in the FX market that could lead to a systemic crisis. With liquidity being drained yet appearing ample, central banks are urged to increase monitoring and transparency. These issues may redefine the landscape for investors and policymakers alike.
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Universal Tariffs
- President Donald Trump plans to apply reciprocal tariffs universally, impacting all countries.
- This expands the scope beyond initial speculation of targeted tariffs with some exclusions.
Impact on Car Prices
- Trump stated his indifference towards rising import car prices, believing it will boost American car sales.
- Peter Navarro anticipates $100 billion in revenue from auto tariffs, offset by tax credits for American car buyers.
UK Seeks Tariff Exemption
- UK Prime Minister Keir Starmer held discussions with Trump regarding an economic prosperity deal.
- This follows the UK's efforts to secure tariff exemptions, potentially by cutting digital taxes.