Trump has initiated new trade wars through tariffs on multiple countries to support US companies.

From Investing.com: 2025-03-07 05:56:00

In 2018, US President Donald Trump began a trade war with China over unfair trade practices, leading to tariffs and restrictions. With Trump re-elected in 2025, a new season of trade wars has started, focusing on supporting US companies and reducing imports. Trump announced tariffs on Canada, Mexico, China, and the EU to boost the labor market and address unemployment.

Mexico was the top US trading partner in 2024, followed by Canada, China, and Germany. Despite trade deficits with many countries, the US is restarting trade wars. The US economy showed steady growth from 2017 to 2024, with some fluctuations due to global events like COVID-19 and the Russia-Ukraine conflict.

Inflation in the US remained stable in 2017-2018 but increased in 2021-2022 due to supply chain issues and increased consumer demand. The Federal Reserve responded with monetary tightening to curb inflation. The US Dollar Index fluctuated over the past 8 years, influenced by economic and geopolitical events.

Technical analysis suggests a decline in the Dollar Index due to new tariffs, while the EUR/USD pair is in a consolidation phase. The US100 index, heavy on tech companies, is sensitive to trade war impacts. Ongoing crises like the Russia-Ukraine conflict pose challenges for global markets.

The US economy remains stable, with tariffs aimed at boosting domestic investment. However, trade wars may face retaliation from countries like China. The US’s economic dominance is challenged by other nations asserting their economic independence.



Read more at Investing.com: Trade Wars 2.0: What Will Trump’s New Tariffs Lead To?