From Investing.com: 2025-04-11 04:34:00

In a surprising move, President Trump announced a reduction in reciprocal tariff rates to 10% for 60 countries and raised tariffs on Chinese imports to 125%. This pause in higher tariff rates for 90 days aims to allow time for negotiations and avoid a financial crisis. The stock market saw a huge rally in response to this announcement, but uncertainty remains high for investors and the corporate world. The US will face significant tariffs, with China’s trade surplus likely to take a hit. The focus on China indicates a strategic shift towards geopolitical leverage rather than purely economic growth.

The announcement provides temporary relief from a potential crisis but introduces unprecedented volatility and uncertainty for investors and businesses. The deep market uncertainty stems from the changing rules of the game and the deliberate campaign to align global interests with the US. Until there is clarity on a deal with China or a defined US strategy, volatility will dominate the market. The new paradigm may offer opportunities for diversified portfolios and defensive business models in this regime change.



Read more at Investing.com: Trump’s Reversal on Tariffs: The Good, the Bad and the Ugly