Uncertainty over trade policy causing market turmoil as U.S. imposes tariffs, shifts from trade liberalization

From Investing.com: 2025-02-10 11:14:00

The uncertainty surrounding U.S. trade policy is causing market turmoil, with tariffs on Chinese goods going into effect while those on Mexico and Canada are delayed. Tariffs can be a powerful negotiating tool but also raise costs for businesses and consumers, with key industries like automotive and energy feeling the impact. President Trump’s push for tariffs marks a shift from decades of trade liberalization, leading to retaliatory tariffs from China. In response, Trump has suggested using tariff revenue to fund a U.S. sovereign wealth fund, which could provide long-term economic stability and reduce dependence on debt-financed government spending.

However, the U.S. faces challenges in creating such a fund due to its trade deficit. Incorporating Bitcoin into the fund is a possibility, aligning with the trend of treating Bitcoin as digital gold. Despite market volatility caused by trade policy changes, opportunities exist in sectors like tech, energy, infrastructure, and select equities.



Read more at Investing.com: The Surprising History of Tariffs and Their Role in US Economic Policy