"Countries are already preparing to retaliate, with the European Union looking set to halt the ratification of a deal with the US and India also postponing its negotiations to finalise an agreement. Instead of taking a big step forward, global trade has taken two steps back. Companies are having to plan multiple scenarios, and future revenue streams are harder to map when the ground keeps shifting."
"These worries are coming back into focus and colliding with the latest tariff uncertainty. As investors become increasingly wary about US economic policy, the dollar has suffered fresh falls against a basket of currencies, with the Dollar Index down 0.35%. Uneasiness is set to spread on Wall Street, with futures markets indicating a retreat when trading resumes later. Japan's Nikkei has absorbed the concerns, falling 1.1%. The FTSE 100 has also opened low"
"The rip-roaring performance of the Footsie has been interrupted as fresh trade chaos mars the party. The exuberance that flashed over global markets after the US Supreme Court rejected Trump's tariffs as unconstitutional is evaporating. The President is using a backdoor via the Trade Act to reimpose temporary blanket tariffs of 10% and has threatened to increase the rate to 15%. Bilateral deals reached through tortuous negotiations have been thrown up in the air again, creating a cloud of uncertainty."
Fresh trade chaos interrupted the Footsie's record run and cooled market exuberance after a Supreme Court ruling against earlier tariffs. The President is moving to reimpose temporary blanket tariffs of 10% and has threatened to raise them to 15%, throwing bilateral deals and negotiations into uncertainty. The EU is poised to halt ratification and India has postponed talks. Companies face scenario-planning challenges as revenue forecasts become harder to map. Stagflation fears have resurfaced amid weakening US growth and persistent inflation. The dollar fell about 0.35%, futures indicate weaker Wall Street opens, Japan’s Nikkei slid 1.1% and gold gained on geopolitical and trade tensions.
Read at London Business News | Londonlovesbusiness.com
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