Trump Tariffs Send Gold to Record Highs
A series of policy decisions by US President Donald Trump have further heightened concerns about global trade.
In the past month, Trump has launched a tariff war with the United States’ largest trading partners — Mexico, Canada, China and the European Union — in what he says is an effort to stem the flow of drugs, particularly fentanyl, into the US from Mexico and Canada, and to persuade manufacturers to close their overseas operations and move them to the US to create more American jobs.
Trump has also imposed 25% tariffs on steel and aluminum exports to the US from 35 countries, including the European Union bloc on Wednesday (12/3) prompting Europe to quickly retaliate with its own tariffs on $28 billion worth of US exports to countries with long-standing close ties to the US, while Canada has imposed new tariffs on $20.7 billion worth of US exports to its northern neighbor.
US President Donald Trump has also threatened the European Union with 200% tariffs on wine, champagne and other spirits produced in the 27-nation bloc after the EU imposed what he called a “nasty 50% tariff” on American distilled whiskey.
Trump’s tariff war has led to a broad selloff on Wall Street, with the three major US stock indexes plunging in recent days. The S&P 500 ended Thursday more than 10% below its record high hit last month.
However, Treasury Secretary Scott Bessent, a former hedge fund manager, said he was not concerned about the recent downturn that has wiped trillions of dollars off equity markets as the US seeks to reshape its economic policy.
Amid heightened economic uncertainty fueled by US President Donald Trump’s tariff war, investors flocked to safe havens, sending gold to a historic high of above $3,000 for the first time. The metal has gained nearly 14% so far this year, extending its strong annual gains into 2024.
Source: (arl@Newsmaker)
