GXDW - Navigating The New Tariff Landscape
2025-04-16 03:05:00 ET
Summary
- The April 2 "Liberation Day" aftermath has been nothing short of chaotic. We've seen new tariffs and a 90-day pause, as well as reductions and exceptions.
- The immense stock and especially bond market reaction has led to a reduction of extremely high tariff rates and the exemption for some product- and sector-specific tariffs. While this has prompted negotiations from all sides, we do not believe that tariffs will be slashed altogether.
- For now, we maintain our world trade growth profile of 2.5% year-on-year given that the US only accounts for 13% of global exports, but ongoing uncertainty could still slump global trade.
By Inga Fechner
April trade chaos: 90-day pause and tariff adjustments
Since April 2, the 90-day pause and reciprocal tariff reduction to 10% for all countries except China, as well as the immense tariff hike of an additional 125% rate for Chinese goods, has changed the tariff picture once again. The recent tariff elimination (0% for all countries except China, which faces a 20% rate) for several electronics such as smartphones, computers, hard drives, processors or semiconductors retroactively for April 5 has also complicated the tariff profile for goods entering the US....
Navigating The New Tariff Landscape