- U.S. ramps up trade pressure, demanding nations block Chinese exports from indirect shipping
- Trump moves to isolate China economically, reshaping global trade policies and supply chains
- Markets react as U.S. pushes worldwide trade partners to cut Chinese access to global exports
Federal Reserve Chair Jerome Powell is set to speak shortly at the Economic Club of Chicago. His remarks are expected to focus on the economic outlook, particularly in light of the ongoing trade tensions and tariff policies, offering a glimpse into the Fed’s direction moving forward.
Just today, the U.S. tripled down on its tariffs against China. Amidst the growing repercussions of the trade war, the White House announced 245% tariffs on Chinese imports. Later, reports started erupting that Trump plans to negotiate tariffs with the rest of the world, as long as these other nations agree to disallow China to ship goods through their countries.
During his first term (2016-2020), Donald Trump also raised tariffs on Chinese products. However, at the time, China’s workaround was to ship its products through intermediary countries, bypassing direct trade restrictions.
Now, Trump appears to be keen on isolating the Chinese market, and the economic repercussions of this clash between the two largest economies in the world are already being felt by all financial sectors.
This series of events sent the American stock market once again plummeting today. Graphics card manufacturer and AI developer Nvidia was the most affected company of the day, losing nearly 8% so far. Meanwhile, the cryptocurrency sector erased $200 billion of its total market cap today, following the growing China–U.S. tensions.
Amidst this period of economic uncertainty, all eyes are now on the U.S. Federal Reserve as investors will closely look into how Chairman Jerome Powell will deal with the almost-guaranteed inflationary pressure in the following months.
