How Investors Can Navigate “Trade War 2.0”

From Financial Modeling Prep.: 2025-02-10 01:53:12

The U.S.-China trade war escalates with new tariffs imposed on both sides. Analysts recommend a barbell strategy to balance growth sectors and macroeconomic risks.

The U.S. imposed 10% tariffs on all Chinese imports, while China retaliated with 15% tariffs on U.S. coal and LNG, along with 10% tariffs on oil, autos, and machinery. Trade imbalances show the U.S. imported $525B from China in 2024, while China imported just $164B from the U.S.

Investors can track sector performance and trade war impact for investment insights. It’s crucial to reassess strategies due to higher U.S. bond yields, a stronger dollar, and deflation in China.

With the current trade war backdrop, investors must focus on sector-specific trends and real-time financial data to navigate market volatility effectively.



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