The New Statesman | UK politics and culture A big bad week for money
Apr 10, 2025
In this engaging discussion, Will Dunn, the Business editor at The New Statesman, and Freddie Hayward, the US correspondent, dive into the chaos caused by recent tariffs from the Trump administration. They analyze the significant downturn in global stock markets and forecast the potential for a recession. The duo also unpacks the complexities of US-China trade relations and the impact of tariffs on international trade dynamics, revealing crucial insights into political maneuvering and economic strategies that could reshape future trade deals.
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Economic Impact of Tariffs
- Donald Trump's tariff policies caused a significant downturn in the stock market, the worst since the pandemic.
- Economists warned of potential consequences like a weakened dollar, trade wars, and a global recession.
Tariff Formula and Market Response
- The arbitrary tariff formula, potentially influenced by AI chatbots, caused a crisis of confidence in businesses.
- This led to a decline in asset prices, including US Treasury bonds, contrary to the Trump administration's expectations.
Political U-turn on Tariffs
- Trump's tariff policy caused market instability, prompting intervention from Treasury Secretary Scott Besant.
- The administration presented conflicting narratives, initially claiming the market downturn was part of the plan, but later admitting to responding to market jitters.