“The ongoing tariff-related uncertainty points to the transactional and unilateral approach of the United States that can complicate matters for policymakers around the world.”
- While tariff implementation has been postponed, policymakers and central banks await clarity on the impact on the economy.
- This uncertainty complicates international trade and relationships with major trading partners such as the EU.
- Even though tariffs on some countries have been announced, the transactional approach of the United States could stay.
The 90-day extension to the reciprocal US tariffs expired last week. US President Trump announced new rates for several trading partners and delayed the implementation date to 1 August. For instance, new 25% tariffs on Japan and South Korea will come into effect from this date, prolonging the current 10% rate and giving countries more time for negotiations. Trump also announced a 50% tariff for Brazil and on US copper imports and threatened to levy additional tariffs on other BRICS countries. The United States seems to be in negotiations with other trading partners, but this tariff-related ambiguity adds to uncertainty on economic growth, US consumption trends, and inflation. As a result, markets are likely to stay volatile, underscoring the need to keep an eye on assets that could provide some stability.
You can now read the full whitepaper at the link below
