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Our Week, Across the Board: Issue 01
The current trade war tariffs the impact development and response.
🌟 Editor's Note
Across the board is a breakdown of global geopolitical shifts and all the impacts that come with.
This is just a very simple snapshot of the current tariff situation that is constantly changing (just trying to get stuff rolling for our newsletter)
🗓️ Upcoming Deadlines, in the trade war.
De Minimis Tariff Increases on Low-Value Imports from China and Hong Kong
| 🛢️ Tariffs on Imports from Countries Purchasing Venezuelan Oil April 2, 2025: A 25% tariff was imposed on all goods imported into the U.S. from any country that imports Venezuelan oil, as per Executive Order 14245. |
🔺 Key Tariff Developments
Universal Tariff Implementation: On April 5, 2025, a baseline 10% tariff was imposed on imports from nearly all countries, excluding certain energy products and minerals.
Escalation with China: The U.S. has increased tariffs on Chinese imports to a cumulative rate of 145%, prompting China to retaliate with tariffs up to 125% on U.S. goods and restrictions on critical mineral exports.
Trade Tensions with Canada and Mexico: Tariffs of 25% have been imposed on most goods from Canada and Mexico, leading to retaliatory measures and heightened trade disputes.
📉 Economic Impacts
Market Volatility: The S&P 500 and Nasdaq have declined by over 15% and nearly 21% year-to-date, respectively, reflecting investor concerns over trade uncertainties. Business Insider
Inflationary Pressures: Federal Reserve Chairman Jerome Powell has warned that the tariffs are likely to raise inflation and increase unemployment, as costs shift to consumers and economic growth slows.
Consumer Price Increases: Prices for consumer goods, particularly clothing and footwear, have surged, with shoe prices up 87% and apparel prices up 65% in the short term. The Budget Lab at Yale
🏭 Industry Responses
Technology Sector: Companies like Nvidia are facing significant losses due to export restrictions, with Nvidia warning of a potential $5.5 billion hit from new U.S. export restrictions on its AI chips to China.
Manufacturing Investments: Firms such as Abbott Laboratories are investing heavily in U.S. manufacturing facilities to mitigate the impact of tariffs and supply chain disruptions.
🌍 Global Trade Outlook
WTO Projections: The World Trade Organization forecasts a 0.2% decline in global merchandise trade for 2025, with potential for a deeper contraction if tariff escalations continue.
Shift in Trade Alliances: The escalating tariffs have led to a fragmentation of global trade, with countries reevaluating their trade partnerships and supply chains to adapt to the new tariff landscape.
Did You Know? The word "tariff" originally comes from the Arabic word "taʿrīf", meaning "notification" or "announcement." Traders once used it to refer to lists of prices or taxes announced publicly at ports.
Till next time and best regards,
Open Terms Team
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