Trump's Tariff Suspension: A Temporary Breather Amid Global Trade Tensions
"A wave of optimism swept through global financial markets following President Trump's announcement of a 90-day moratorium on the imposition of new 'reciprocal' tariffs. This unexpected move, driven by concerns over a potential crisis in the bond market, injected vitality into U.S. stock exchanges, spreading bullish sentiment to Asian and European markets.
However, the relief does not extend to China, which faces a substantial increase in tariffs projected to exceed 145%. Despite the pressure, Beijing maintains its stance, implementing a new round of 84% retaliatory tariffs on U.S. goods.
Trump's decision comes after the imposition of previous tariffs, including 46% on Vietnam, 49% on Cambodia, and 24% on Malaysia. These countries, crucial in the supply chain for clothing and footwear for U.S. consumers, faced a significant economic impact.
Analysts point out that the proposed tariffs threatened to destabilize global supply chains, especially for Vietnam and Cambodia, which have emerged as manufacturing hubs alternative to China. The growing trend of international brands to diversify their production outside of China, seeking lower labor costs and mitigating geopolitical risks, would be compromised by these measures.#INitOnBinance
