What Trump's Trade War Means for YOUR Investments
It's been another 'Manic Monday' for savers and investors.
Having gotten up at the start of recently to the game-changing news that an unidentified Chinese start-up had actually developed a low-cost artificial intelligence (AI) chatbot, they learned over the weekend that Donald Trump actually was going to carry out his risk of launching a full-scale trade war.
The US President's choice to slap a 25 per cent tariff on products imported from Canada and Mexico, and a ten percent tax on deliveries from China, sent stock exchange into another tailspin, just as they were recuperating from recently's rout.
But whereas that sell-off was mainly confined to AI and other innovation stocks, this time the effects of a possibly drawn-out trade war might be much more destructive and extensive, and maybe plunge the global economy - including the UK - into a downturn.
And the decision to delay the tariffs on Mexico for one month used just partial break on global markets.
So how should British investors play this extremely unpredictable and unpredictable circumstance? What are the sectors and assets to avoid, and who or what might become winners?
In its simplest form, a tariff is a tax imposed by one nation on items imported from another.
Crucially, the task is not paid by the foreign business exporting however by the receiving service, which pays the levy to its government, offering it with useful tax revenues.
President Donald Trump speaking to press reporters in Washington today after Air Force One touched down at Joint Base Andrews
These could be worth as much as $250billion a year, or 0.8 percent of US GDP, according to consultants at Capital Economics.
Canada, Mexico and China together account for $1.3 trillion - or 42 percent - of the $3.1 trillion of goods imported into the US in 2023.
It's been another 'Manic Monday' for savers and investors.
Having gotten up at the start of recently to the game-changing news that an unidentified Chinese start-up had actually developed a low-cost artificial intelligence (AI) chatbot, they learned over the weekend that Donald Trump actually was going to carry out his risk of launching a full-scale trade war.
The US President's choice to slap a 25 per cent tariff on products imported from Canada and Mexico, and a ten percent tax on deliveries from China, sent stock exchange into another tailspin, just as they were recuperating from recently's rout.
But whereas that sell-off was mainly confined to AI and other innovation stocks, this time the effects of a possibly drawn-out trade war might be much more destructive and extensive, and maybe plunge the global economy - including the UK - into a downturn.
And the decision to delay the tariffs on Mexico for one month used just partial break on global markets.
So how should British investors play this extremely unpredictable and unpredictable circumstance? What are the sectors and assets to avoid, and who or what might become winners?
In its simplest form, a tariff is a tax imposed by one nation on items imported from another.
Crucially, the task is not paid by the foreign business exporting however by the receiving service, which pays the levy to its government, offering it with useful tax revenues.
President Donald Trump speaking to press reporters in Washington today after Air Force One touched down at Joint Base Andrews
These could be worth as much as $250billion a year, or 0.8 percent of US GDP, according to consultants at Capital Economics.
Canada, Mexico and China together account for $1.3 trillion - or 42 percent - of the $3.1 trillion of goods imported into the US in 2023.