If the last two weeks are any indication of what it’s going to be like for the next four years, then we better buckle up.
The US has announced a 90 day pause on President Trump’s Liberation Day tariffs.
That was a baseline 10 percent tax on all imports into the US from every country, including Caribbean countries like Jamaica. Guyana was slapped with a 38 percent tariff.
Then there’s China, which already had a 20 percent tariff. They got hit with another 125 percent, bringing their tariff to a whopping 145 percent on all Chinese goods!
The abrupt escalation of this trade war triggered absolute chaos in global financial markets.
US stocks plummeted. The S&P 500 dropped four percent in one of its worst trading sessions since the 2020 pandemic crash. Major tech stocks like Apple, Amazon, and Nvidia lost tens of billions of dollars in market capitalization.
Markets in Europe and Asia were also hit hard. Plus talks of a recession started back up quickly because China decided they weren’t backing down and clapped back with their own tariffs.
Even the deal to save TikTok, which was basically signed and ready to go, was cancelled. Like I said, chaos!
By the way, have you been seeing all these videos on TikTok from Chinese manufacturers? They’re selling all the designer goods from Birkin bags to high end furniture at a fraction of the price. The Chinese said, oh you want a trade war? Bet!
So, exactly one week after Liberation Day, Donald Trump reversed course. He announced a 90-day suspension of most new tariffs, including those on China. The initial 20 percent tariff is still in place but the ones announced on “Liberation Day” have been paused.
Trump also says that most electronic devices will be exempt from Chinese tariffs which is great for companies like Apple and Adidas that manufacture in China. There were reports that with the tariffs, the new iPhone would cost as much as $2500!
Of course, the markets have reacted positively to the pause. The S&P 500 surged 9.5 percent, the Nasdaq rose 12 percent, and the Dow Jones climbed eight percent, marking one of the largest single-day rallies in history.
The 90-day tariff pause is supposed to be a window for negotiations, but there are still underlying tensions.
For countries like Jamaica, that puts us in a tricky position, and vulnerable to instability. That’s why one of our Taking Stock analysts suggested that it’s time that Jamaica diversifies its trading and stops relying so heavily on the US.
And that’s the bottom line.
So what do you think about the Trump tariffs? Are you betting on the US stock market? Or taking advantage of those deals from China? Or both? Let me know in the comments.
Wanna learn how to invest and take advantage of situations like this?
Go to investingforbeginnersja.com.
Let’s get this money!