Trump's New Tariffs Shake Up the Market Again
In his latest speech on Tuesday (2/18) Donald Trump is likely to impose tariffs on imports of cars, semi-conductors and pharmaceuticals of around $25 with an announcement to be made as early as April 2, 2025.
Trump also said he would try to "rebalance" US trade relations around the world, he also accused other countries of cheating the US and viewed import duties as a way to bring industry back to America and collect more revenue.
These steps are seen by investors and market players as changing the supply chain and global trade flows because the tariffs paid by importers will later be passed on to consumers. It is clear that this will make many people worry about the problem of global inflation that will occur which will cause gold prices to soar because demand for haven assets will increase.
Currently, the tariff war is still the main point and strong driver for Gold, which although it has experienced several corrections, remains in a fairly high area at $2900 per troy ounce. However, it is worth watching carefully one of the contents of Trump's speech about peace in the Middle East and Ukraine-Russia which could burden sentiment in the short term.
One thing that could also burden sentiment and make gold correct in the short term is the possibility of maintaining interest rates related to tariff breakthroughs that could keep inflation high.
Source: (mrv@Newsmaker)
