FT News Briefing Markets might not have hit the bottom yet
29 snips
Apr 9, 2025 Donald Trump is advancing a hefty 50% tariff on Chinese imports, raising fears of an escalating trade war. This move threatens nearly $2 trillion in foreign investments in the U.S. as companies weigh increased costs and shifting consumer demands. Market analysts express concern about a potential selloff in U.S. Treasuries and how it could complicate things for investors. Amid these uncertainties, investors are feeling the panic, and the outlook for global markets is looking increasingly grim.
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Tariff Impact
- The Trump administration's 50% tariff on Chinese goods significantly impacts consumer prices.
- A $1 item from China now costs $2.04 due to the 104% markup.
Investment Risk
- Nearly $2 trillion in pledged US investments are at risk due to Trump's trade policies.
- Many companies with global supply chains are affected by tariffs, leading to concerns about a US recession.
Market Turmoil
- Recent market downturns are comparable to the 2020 COVID crisis and the 1987 Black Monday crash.
- The sell-off in safe havens like US Treasuries and gold indicates financial distress among investors.