Trump Aides Consider Tariffs on Critical Imports

Economics News

Trump Aides Consider Tariffs on Critical Imports
TariffsTrade PolicyUS Dollar
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US President-elect Donald Trump's aides are exploring tariffs on all countries but focusing on vital imports. The discussions prioritize imposing tariffs on specific sectors deemed crucial to national or economic security. The news triggered a decrease in the US Dollar and an increase in US stock index futures, indicating a positive shift in risk sentiment.

USPresident-elect Donald Trump's aides are considering tariffs that would be applied to every country but only cover critical imports, the Washington Post reported on Monday, per Reuters. The current discussions center on imposing tariffs only on certain sectors deemed critical to national or economic security, three people familiar with the matter told the Washington Post.

What are the key assets to track to understand risk sentiment dynamics? Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise.

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