The Fin
Winners and losers from Trump’s (forever) trade war
Apr 16, 2025
James Thomson, Chanticleer columnist for The Australian Financial Review, dives into the turbulent impact of Trump's trade war on global markets. He discusses Australia’s precarious economic position and the heightened risks for investors heavily reliant on US equities. The podcast explores the chaos following new tariffs, the looming recession risks, and how the Reserve Bank of Australia is grappling with interest rates. Thomson highlights the clear winners and losers from the trade turmoil as shifting practices reshape the economic landscape.
23:48
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Trump's unexpected tariff announcements led to immediate market panic, significantly impacting investors and showcasing Australia’s heightened vulnerability to trade tensions.
- The bond market's reaction to economic instability underscores its crucial role in shaping government responses and influencing overall investor confidence in uncertain times.
Deep dives
Market Turbulence Triggered by Tariff Announcements
The recent market turmoil was primarily instigated by Donald Trump's unexpected tariff announcements, which imposed significant costs on imports and sparked fear of a trade war, particularly with China. It was noted that following Trump’s announcement, markets experienced immediate panic, with the ASX plummeting 6.3% on opening, showcasing the impact of these tariffs. This shock was compounded by the sudden realization that the tariffs were harsher than many investors had anticipated, leading to a change in market sentiment and behavior. The situation evolved rapidly as markets attempted to digest the implications of a diminished free trade environment, particularly affecting smaller trade-dependent economies like Australia.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
