Wonderful Introduction:
Since ancient times, there have been joys and sorrows, and since ancient times, there have been sorrowful moon and sad songs. But we never understood it, and we thought everything was just a distant memory. Because there is no real experience, there is no deep feeling in the heart.
Hello everyone, today Avatrade Avatrade Ava Foreign Exchange will bring you "[Ava Ava Foreign Exchange Decision Analysis]: Peer-to-peer tariffs will overwhelm the global economy, and the US dollar plummets." Hope it will be helpful to you! The original content is as follows:
On April 3, US President Trump announced the benchmark tariff rate at 10% in the White House Rose Garden on Wednesday (April 2), local time, and the details of higher "reciprocal tariffs". After the news of large-scale tariffs came out, the market risk aversion sentiment heated up sharply in the early trading of the Asian market on Thursday. US stocks https://avatradescn.comFutures plummeted, Nasdaq futures fell by more than 4%, and Dow Jones futures plummeted by more than 1,100 points.
On April 2 local time, the White House issued a statement saying that US President Donald Trump declared a national emergency on the same day to enhance the United States' avatradescn.competitive advantage, protect US sovereignty, and strengthen US national and economic security.
The statement said that Trump will impose a 10% "benchmark tariff" on all countries, which will take effect at 0:01 am Eastern Time on April 5. In addition, Trump will impose personalized higher "reciprocal tariffs" on countries with the largest U.S. trade deficit, which will take effect at 0:01 a.m. Eastern Time on April 9, and all other countries will continue to avatradescn.comply with the original 10% tariff benchmark. The statement also said that Trump has "modification authority" and can raise or lower tariffs depending on the situation.
The chart shown by Trump shows that the United States imposes 34% reciprocal tariffs on China, 20% reciprocal tariffs on the EU, 10% reciprocal tariffs on Brazil and the UK, 31% reciprocal tariffs on Switzerland, 26% reciprocal tariffs on India, 25% reciprocal tariffs on South Korea, and 24% reciprocal tariffs on Japan.Reciprocal tariffs, impose a 32% reciprocal tariff on Indonesia and a 36% reciprocal tariff on Thailand.
Bloomberg, the US, said that the move marks a sharp escalation of Trump's trade war and may lead to immediate revenge from U.S. trading partners.
Asian market
Japanese service industry lost momentum in March, and the final value of the service industry Purchasing Managers index dropped sharply from 53.7 in February to a neutral level of 50.0. The integrated Purchasing Managers Index fell to 48.9, the lowest level since November 2022, indicating a contraction in overall private sector activity.
S&PGlobal's AnnabelFiddes pointed out that although the service industry's new orders and export business are still in the growth field, the market conditions are significantly weaker.
In addition, the cost of inputs across the private sector has risen at the fastest pace in seven months, and output price inflation remains at an all-time high.
Business sentiment has also deteriorated, with overall optimism about output prospects in the avatradescn.coming year falling to its lowest level since January 2021.
The latest data released by Caixin on Thursday showed that China's service industry purchasing managers' index (PMI) rose from 51.4 in February to 51.9 in March. The market expects the reading during the reporting period to be 51.6.
European Market
Isabel Schnabel, a member of the Executive avatradescn.committee of the European Central Bank, warned today that the global trade war could lead to a sharp rebound in inflation and severely drag down growth.
In a speech, she stressed that severe disruptions in global trade flows could push inflation higher by several percentage points in the first few years.
She added that even the “moderate decoupling” situation still has meaningful effects – inflation increases by as much as 1%, which will take years to ease.
ECB President Christine Lagarde warned that the global impact of the U.S.-led tariffs will be "negative", although the extent of the damage depends largely on scope, duration and target products.
In an interview with Newstalk Radio in Ireland, she stressed that the wider impact on global trade and growth will vary, but the possibility of lasting destruction is real.
Lagarde also pointed out that history shows that such trade escalation often ends in negotiations rather than protracted battles.
“Many times, those tariffs escalate because they prove to be harmful, even for those who impose tariffs, which leads to a negotiating table,” she said, suggesting that any initial damage could eventually give way to diplomatic solutions and eliminate barriers to trade.
U.S. Market
U.S. ADP private sector employment increased by 155k in March, exceeding the expected 120k. The avatradescn.commodity production department added 24k positions and the service industry added 132k positions.
Employers of all sizes have contributed to growth, with small avatradescn.companies leading the way, adding 52k jobs, followed by large and medium-sized enterprises, adding 59k and 43k respectively.
Wage growth continues to slow despite strong employment data. Year-on-year salary increase for those who remained slowed to 4.6%, while year-on-year growth for those who changed jobs slowed to 6.5%. The premium for job change dropped to 1.9 percentage points, the lowest level since September.
ADP chief economist Nela Richardson avatradescn.commented that despite “policy uncertainty and pessimistic consumers,” overall employment data is a positive indicator for the economy and businesses of all sizes.
The above content is all about "[Ava Foreign Exchange Decision Analysis]: Peer-to-peer tariffs will overwhelm the global economy, and the US dollar plummeted". It was carefully avatradescn.compiled and edited by the Avatrade Foreign Exchange editor. I hope it will be helpful to your transactions! Thanks for the support!
Share, just as simple as a gust of wind can bring refreshment, just as pure as a flower can bring fragrance. The dusty heart gradually opened, and I learned to share, sharing is actually so simple.