Possible Tariff Reduction on China
Trump might consider reducing the tariff on China in exchange for Beijing’s support on the sale of US operations of ByteDance Ltd., as per a Bloomberg source. Although China has not immediately responded back to his earlier comment, many are highly anticipating that if China really agrees to this request, then this sends a “bad signal,” as stated by Josef Gregory Mahoney, a professor of international relations at Shanghai’s East China Normal University. Meaning that this might create even more fierce competition than we already had in the competitive industry and hostility from one firm to another.
Auto Tariff will come into effect on April 02
Trump also announced his motive for implementing a 25% tariff on all cars that are not made in the United States, which will come into effect on April 02 while collecting on April 03. The goal is to force major companies to move their production and stimulate more job creation in the US. Either you move or you will be faced with high tariffs; all will become revenue for the US unless you find other stream markets. Yet, for the EU, Trump still repeated his statement on being mistreated by the EU, which, having exemption or negotiation, would be far off from the table. In fact, even top EU officials also anticipate a 20% tariff coming from Trump, as per the Financial Times.
Greenland
President Donald Trump is still pestering to take over Greenland for the sake of international security.
Federal Reserve
The Federal Reserve is still reaffirming that the US economy is far off from the recession or even the stagflation yet remains committed toward bringing the inflation down to the restrictive level, as per the FED’s Musalem. This also means that they are still open to more interest rate hikes if the inflation moves far beyond the 2%. While he is also addressing a freezing of hiring and investing from the small businesses. As per the CME Fedwatch tool, the odds are now open on a range of 450-475 after the statement, addressing having a slight hawkish tone.
