The attention of financial markets – today, Wednesday, is heading to a prospective announcement by US President Donald Trump on a new package of customs duties, in a move that sparked widespread tension among investors amid almost complete absence of details about the scope of the decision and its potential repercussions.
For weeks, Trump refers to April 2 as “Liberation Day”, as he intends to impose new customs duties that may cause disturbance in the World Trade System, and directly affects corporate profits, global economic growth, inflation rates, and even on the interest rate policy of the Federal Reserve (US Central Bank).
While investors received optimism about economic policies that stimulate growth, the series of developments related to customs duties turned the general mood to caution and anxiety.
Investors agree that the upcoming announcement will be a decisive moment in shaping the path of global markets during the coming period, but the state of ambiguity and uncertainty remains control, especially in light of the possibility that commercial negotiations will be long, according to Reuters.
“He does not remember” a position in which the risks were great in this way, the results are not expected. Satan lies in the details, and no one knows these details so far. “
Wall Street opens up to a decrease
Indeed, the main indicators of the “Wall Street” opened their dealings today with a sharp decrease, before some of its losses later reduced, as the “Dow Jones” industrial and “Standard & Poor’s 500” index decreased by 0.4%, while the NASDAC index decreased by 0.3%.
On the other side of the ocean, the European index “Stoxx 600” decreased by about 1%, while gold settled near its high standard levels, amid the increasing demand as a safe haven.
The White House confirmed – on Tuesday – that Trump will announce today the imposition of new customs duties, but it has not provided any details about its size or scope, which increased the concern of investors, companies and consumers alike from a possible escalation in the World Trade War.
Caroline Levitt, a White House spokeswoman, said the anti -customs duties will be imposed on countries that impose fees on American goods, and will enter into force as soon as Trump announced it. Customs fees will also be applied by 25% to auto imports, starting from tomorrow, April.
The lack of clarity about whether the administration will impose unified fees on all imports or will adopt a gradual approach, one of the most prominent challenges facing investors, especially in estimating the final impact on profits, growth rates, and inflation levels in the United States and the world.
