Tag: executive trade authority

On April 2, 2025, President Donald Trump announced a sweeping overhaul of U.S. trade policy, introducing a baseline 10% tariff on all imports and significantly higher rates for certain countries, notably China. This move, termed "Liberation Day" by the administration, aimed to address longstanding trade imbalances and protect domestic industries. The immediate aftermath saw global markets plunge, with the S&P 500 experiencing its worst single-day decline since the 2020 pandemic-induced crash . However, a subsequent 90-day tariff pause, announced on April 9, led to a market rebound, highlighting the volatility and uncertainty surrounding the administration's trade strategies.

In the first quarter of 2025, the U.S. economy contracts in Q1 2025 by 0.3%, marking the first decline since early 2022. This downturn was primarily driven by a surge in imports as businesses and consumers rushed to purchase foreign goods ahead of new tariffs introduced by President Donald Trump. The resulting record trade deficit significantly dragged down GDP. 

U.S. and China Slash Tariffs: In a significant development in international trade relations, the United States and China have agreed to a 90-day reduction in tariffs, marking a temporary truce in their ongoing trade conflict. This agreement, reached after intensive negotiations in Geneva, reduces U.S. tariffs on Chinese goods from 145% to 30% and lowers China's tariffs on U.S. goods from 125% to 10% . The truce aims to provide a window for both nations to negotiate a more permanent resolution to their trade disputes.

In April 2025, the U.S. inflation rate decreased to 2.3%, marking the lowest level since February 2021 . This development occurs against the backdrop of President Donald Trump's recent tariff adjustments, including the introduction of new levies and subsequent partial rollbacks. The interplay between these tariff policies and inflation dynamics presents a complex scenario with significant legal, economic, and policy considerations.

In 2025, the U.S. equities market confronts significant challenges stemming from abrupt policy changes, particularly aggressive trade tariffs and shifting monetary policies. These developments have introduced heightened volatility and uncertainty, compelling investors and policymakers to reassess traditional economic paradigms.

On May 8, 2025, the U.S.-U.K. trade framework aimed at alleviating some of the tariffs imposed in recent years. This agreement marks a significant development in international trade relations, particularly in the context of President Donald Trump's "Liberation Day" tariffs, which introduced a 10% baseline tariff on imports and higher rates on specific goods. The new framework seeks to reduce tariffs on certain products, such as British automobiles and steel, while maintaining others. It also opens up the U.K. market to more U.S. agricultural exports.