Gold Edges Higher As Markets Brace For Tit-For-Tat Tariff Deadline
Gold (XAU/USD) prices are steady near $3,030 at the time of writing on Monday (3/24) as traders assess fresh interest rate headlines over the weekend. News that the Trump administration will ease the scope of broad tariffs imposed on April 2nd brought relief to the market. Instead, US President Donald Trump is said to be looking for more specific tariffs targeted at specific sectors per country or region.
This helps ease fears of broad tit-for-tat tariffs. The idea behind these tariffs is to get companies to come back to the US. However, a 25% tariff is not high enough to make companies’ supply chains untenable, and the Trump administration would actually need to impose import taxes of perhaps 100% to 200%, as well as offer large government subsidies, to get companies to come back to manufacturing, Marketwatch reports.
Source: FXStreet