Trump plans to implement tariffs on global imports, causing uncertainty and volatility in markets.

From Investing.com: 2025-01-08 02:52:00

Incoming US President Donald Trump has plans to implement tariffs up to 10% on global imports, 60% on Chinese goods, and a 25% import surge on Canadian and Mexican products, potentially disrupting trade flows and raising costs, sparking concerns of retaliation. Despite speculation, Trump maintains that his tariff policy will not be scaled back, leading to uncertainty in world markets. Rising inflation risks, driven by factors like trade protectionism and high budget deficits, could impact yields in 2025, creating a bumpy road ahead for the economy.

Treasury yields rose in response to December data indicating inflationary pressure, casting doubt on potential rate cuts. The uncertainty surrounding interest rates led to increased market volatility, particularly impacting gold prices. Traders anticipate further rate cuts in 2025, although the incoming President’s stance on interest rates may influence market dynamics in the coming years.

Oil prices declined on Tuesday, erasing gains from the previous week, as concerns about economic growth in China persisted. Natural gas futures are bullish due to anticipated colder weather in the US, with prices currently trading with a 4% gain. However, a potential selling spree could push prices back into bearish territory if they fail to hold above the immediate support level. The upcoming inventory announcement may also impact natural gas futures, contributing to market uncertainty in the face of potential policy changes under the new administration.



Read more at Investing.com: Global Markets Likely to Feel Trump’s Tariff Fear