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Trump’s tariff plans escalate trade tensions again
Trump’s tariff plans escalate trade tensions amid ongoing economic challenges.
Trump’s tariff plans escalate trade tensions amid ongoing economic challenges.
President Trump’s latest economic approach is moving beyond the Federal Reserve, focusing instead on tariffs, restrained rate cuts, and efforts to curb wasteful spending.
This strategy has the potential to lower borrowing costs in ways that monetary policy alone cannot—offering either a masterstroke in economic management or a massive error with unintended consequences.
By avoiding direct pressure on the Fed to cut rates, Trump and key financial figures like Scott Bessent are betting on fiscal policy to influence markets. Tariffs and spending reforms could help stabilise the economy, but they also risk slowing growth if implemented too aggressively.
Trade war narratives persist largely because markets remain resilient.
However, outside of tensions at the U.S.-Mexico and U.S.-Canada borders, Trump does not appear eager to engage in aggressive economic moves against China or Europe—at least for now.