Trump’s trade war, bond selloff, Ukraine and China

Impact of Trump’s Tariffs on Global Markets

The implementation of President Trump's sweeping tariffs has intensified a global trade war, significantly affecting market stability. China is subject to a staggering 104% tariff, prompting its leaders to convene for a high-level meeting aimed at bolstering its economy and calming the market's reaction. Investors are increasingly worried that the tariffs will not only lead to inflation but could also force the Federal Reserve to reconsider interest rates, leading to a substantial sell-off in U.S. government bonds, traditionally viewed as a safe investment. Analysts estimate that these tariffs could result in a $3.1 trillion cost to the U.S. economy over the next decade, with households expected to face an average increase of $2,100 by 2025, creating strain on consumer spending decisions and elevating recession fears.