• Mar. Jul 8th, 2025

fifebusinessjournal.co.uk

fifebusinessjournal.co.uk

Trump trade war: Limited escalation hopes rise

PorStaff

Mar 24, 2025
U.S. President Donald Trump gestures during the signing event for an executive order to shut down the Department of Education, in the East Room at the White House in Washington, D.C., U.S., March 20, 2025. REUTERS/Carlos Barria

Global financial markets are giving a cautious welcome to reports that the Trump administration is to row back on elements of its threatened trade war escalation.

Separate US news organisations said over the weekend that sector-specific tariffs, which the president had warned would come into effect on 2 April, were now unlikely.

If true, it would mean that tariffs of up to 25% on cars, semiconductors, and pharmaceutical goods would not take effect.

Money latest: Supermarket ‘price war’ heats up

Bloomberg News was first to report the development, which followed fierce lobbying from the industries concerned.

The Wall Street Journal, citing a Trump administration official, also reported that the threatened import charges were to be withdrawn, at least for a further temporary period.

They added, however, that so-called «reciprocal» tariffs in response to duties imposed on US goods to date were still planned for 2 April.

Please use Chrome browser for a more accessible video player

Impact of US tariffs on UK industry

There is speculation they could be narrowed to target the countries, or blocs, with the greatest trade imbalances with the United States.

The White House was yet to comment officially.

But the remarks were seen as further hope of a climbdown by financial markets, as they built on earlier comments by US Treasury Secretary Scott Bessent that indicated a possible delay to the reciprocal element as details continued to be ironed out.

Further US talks with China are planned while the European Union said last week that it may delay implementing its threatened response to US steel and aluminium tariffs.

Please use Chrome browser for a more accessible video player

Trump threatens EU with 200% tariffs

Any signs for optimism are being seized upon by investors.

US stocks and the dollar have suffered particularly in recent weeks amid fears the trade war could spark recession in the world’s largest economy and inflict hefty economic damage elsewhere.

The latest economic indicators suggested harm for the UK already after the universal tariffs on metals came into effect earlier this month.

Data from S&P Global showed weak international demand resulted in the fastest decline in manufacturing export sales since August 2023 during March and the steepest downturn in production volumes for almost one-and-a-half years.

Stock markets were up across the board on Monday and US futures pointed to a positive open on the back of the reported climbdown.

Read more:
Trump trade war expands with 25% tariffs on all steel and aluminium imports
How tariffs are wreaking havoc in UK metals industry

In Europe, the FTSE 100 rose by 0.5% in early deals while there were similar gains for the DAX in Germany.

Russ Mould, investment director at AJ Bell, said of the market mood: «An uncertain outlook for many countries is problematic from an economic perspective and it’s bad for investors who are struggling to know how they should position portfolios. Constant chopping and changing could result in financial markets feeling like they’ve got seasickness.

«2025 is fast becoming the year of the economic slowdown. There is a high chance that businesses pause investment until they know the lay of the land and consumers continue to be cautious with their spending. Fortunately, more information could be just around the corner.

«Trump says 2 April will be ‘Liberation Day’ for the US, whereby he will unveil reciprocal tariffs on countries deemed to be giving the US a bad deal on trade. Interestingly, markets haven’t braced themselves for the worst on this news. Instead, there is chatter that Liberation Day might not be so punishing as previously thought.»

SOURCE

Por Staff

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

You missed

Every mobile phone in the UK will receive an emergency alert as the government tests the system nationwide. During this second test, approximately 87 million mobile devices will ring out unprompted. The test is scheduled to occur at 3pm on Sunday 7 September. Phones will vibrate and emit a loud siren sound for roughly 10 seconds, even if they are set to silent. A message will appear on phone screens stating that it is only a test and no action needs to be taken. The test message is expected to say: «This is a test of Emergency Alerts, a new UK government service that will warn you if there’s a life-threatening emergency nearby. In a real emergency, follow the instructions in the alert to keep yourself and others safe. Visit gov.uk/alerts for more information. This is a test. You do not need to take any action.» The government is conducting this test to ensure the system is functioning optimally and to familiarize the public with the alerts. Since the first national test in April 2023, the system has been used for real emergencies, including warnings about adverse weather events and the movement of unexploded bombs. Critics have raised concerns about the potential risks of these alerts, including distractions for drivers and the safety of domestic violence victims who may possess secret phones. Chancellor of the Duchy of Lancaster, Pat McFadden, emphasized the importance of this test as a crucial communication tool between the government and the public. All mobile phones will now be equipped to receive emergency alerts, including important information on when the alert will be sent and the content of the message. This feature will ensure that all individuals are promptly informed of any urgent situations and can take necessary actions to stay safe.